Ryanair has expressed disappointment with its recent business performance, leading to a 17% decline in its stock value following a quarterly earnings report that fell short of expectations. The Irish low-cost airline reported revenue of €3.6 billion ($4 billion), virtually unchanged from the previous year, while profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, the airline is finding it increasingly challenging to secure bookings.
O’Leary highlighted that although passenger traffic has grown by 10% to reach 55 million, this increase comes at the cost of reduced fares. He remarked on the disappointing performance of close-in bookings leading into the busy travel months of July, August, and September.
In addition to the weaker demand, Ryanair faces rising labor costs and is affected by delays in aircraft deliveries from Boeing, an ongoing issue that has frustrated O’Leary. Despite a recent incident involving a 737 Max 9, he has maintained a critical stance towards the aircraft manufacturer, urging them to improve their delivery plans.
O’Leary also pointed out that consumers in the European Union are feeling the financial strain of years of inflation and slow economic growth, which may impact travel behaviors. As a result, he indicated that Ryanair will reduce its capacity for summer 2025, and there will be no growth in capacity for the subsequent two years. He suggested that this reduced capacity might position the airline favorably if consumer spending continues to be pressured in the coming months.