Ryanair has expressed disappointment in its recent business performance, resulting in a 17% decline in stock value following the release of a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenues of €3.6 billion ($4 billion), which remained steady compared to the previous year. However, profits plummeted by nearly half, reaching just €336 million. CEO Michael O’Leary noted that although the airline is attracting more passengers—up 10% to 55 million—it requires significant effort to maintain this growth given the price sensitivity of the market.
During the company’s earnings call, O’Leary highlighted that while traffic numbers are promising, the airline has to regularly incentivize fares and bookings to achieve results. He pointed out disappointing close-in booking numbers as the company approached the crucial summer months of July, August, and September.
In addition to lower demand, Ryanair is facing increased labor costs and continues to experience frustration over Boeing’s delivery delays, a longstanding issue for O’Leary. Despite recent challenges, he maintains confidence in the airline’s direction, stating that customers may be feeling the economic strain as inflation and slow growth impact their financial situations within the European Union.
Looking ahead, O’Leary mentioned that Ryanair would operate with less capacity in the summer of 2025 than initially planned due to Boeing’s delivery issues. He suggested that a period of no capacity growth over the next two years might be advantageous if consumer pressure continues to escalate in the coming months.