Ryanair is expressing dissatisfaction with its recent business performance, which has resulted in disappointment among investors as well. The Irish budget airline saw its stock plummet by 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), which is comparable to last year’s figures, but profits took a significant hit, nearly halving to €336 million. CEO Michael O’Leary noted that while the airline is successfully attracting more passengers, it is becoming increasingly challenging to do so.
O’Leary pointed out that traffic growth remains robust, with a 10% increase in passengers totaling 55 million, but it comes at a cost. He highlighted the need to continually stimulate fare rates and bookings, describing the close-in fares and booking performance as disappointing, especially as the peak months of July, August, and September approach.
In addition to weaker demand, Ryanair is grappling with rising labor costs and has also expressed frustration over delays in Boeing aircraft deliveries, a long-standing issue for O’Leary. Despite recent incidents involving the 737 Max 9, he has been vocal about his expectations for Boeing to improve its delivery schedules.
Furthermore, O’Leary indicated that consumers in the European Union seem to be feeling the effects of inflation and a slowing economy more acutely than during the early stages of recovery from the COVID-19 pandemic. He mentioned that Ryanair would adjust its capacity for summer 2025 to reflect fewer aircraft than initially planned due to ongoing delivery delays. He suggested that operating with reduced capacity may prove advantageous if consumers continue to face financial pressures over the next year to 18 months.