Ryanair has expressed disappointment in its recent business performance, leading to a 17% drop in its stock following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenues of €3.6 billion (approximately $4 billion), which remained unchanged from the previous year. However, profits saw a significant decline, nearly halving to €336 million. CEO Michael O’Leary noted that while the number of passengers flying with the airline increased by 10% to 55 million, it came at a cost, necessitating aggressive fare promotions and resulting in disappointing close-in bookings, particularly heading into the peak summer months of July, August, and September.
Additionally, Ryanair is facing challenges due to rising labor costs and has attributed some of its issues to delays in aircraft deliveries from Boeing. Despite having defended the company after a recent incident involving a 737 Max 9 aircraft, O’Leary has long criticized Boeing for its lack of reliability.
O’Leary also pointed out that customer spending appears to be declining compared to the early recovery phase post-COVID-19, citing inflation and slowing economic growth in the European Union as contributing factors. He indicated that Ryanair would have reduced capacity for the summer of 2025 compared to earlier plans, and noted that without growth over the next couple of years, the company might be better positioned if consumer pressures persist.