Ryanair has expressed disappointment regarding its recent business performance, which has also affected investor confidence. Following the release of a quarterly earnings report that fell short of expectations, the Irish budget airline’s stock has plummeted 17%. The company reported revenues of €3.6 billion ($4 billion), consistent with last year, but profits decreased significantly to €336 million.
CEO Michael O’Leary noted that while the airline successfully increased passenger numbers to 55 million—up 10%—this growth is heavily dependent on pricing strategies. He highlighted the need for the airline to continually adjust fares and encourage bookings, especially as performance in close-in bookings has been weaker than anticipated in the critical peak months of July, August, and September.
Ryanair is also facing challenges from increasing labor costs and has partially attributed performance issues to delays in aircraft deliveries from Boeing, a concern O’Leary has raised repeatedly. Despite overcoming some operational issues, the airline’s customers seem to be feeling the effects of prolonged inflation and economic stagnation in the European Union.
O’Leary indicated that Ryanair would operate with less capacity going into the summer of 2025 than previously scheduled due to the delayed Boeing deliveries, followed by a period of no capacity growth for two years. He suggested that if consumer pressure continues over the next 18 months, this could potentially position Ryanair favorably in the market.