Ryanair has expressed disappointment with its business performance, a sentiment echoed by its investors, as the airline’s stock dropped by 17% following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), remaining consistent with last year’s figures, but profits nearly halved to €336 million. CEO Michael O’Leary noted the increased number of passengers, stating that while traffic grew by 10% to 55 million travelers, it came at a significant cost.
During the earnings call, O’Leary explained that the airline is making efforts to stimulate fares and bookings due to a weaker performance than anticipated for the peak months of July, August, and September. In addition to reduced demand, Ryanair is facing higher labor costs and has pointed to Boeing’s continued delivery delays, a long-standing issue for the airline.
O’Leary acknowledged that customers are beginning to feel the impact of years of inflation and slow economic growth within the European Union. This situation may lead to a reduction in the number of aircraft operated by the airline. He mentioned that Ryanair plans to have less capacity for the summer of 2025 than originally scheduled due to ongoing Boeing delivery issues, and indicated that the airline would experience two years of stagnant capacity growth. If consumer pressures persist for the next year to 18 months, O’Leary suggested this might not adversely affect Ryanair.