Ryanair has expressed disappointment over its business performance, leading to discontent among investors as well. The Irish budget airline’s stock has dropped 17% following the release of its quarterly earnings report, which fell short of expectations. With revenues holding steady at €3.6 billion ($4 billion), profits saw a significant decline, nearly halving to €336 million. CEO Michael O’Leary noted that while passenger numbers increased to 55 million, up 10%, the airline has had to work exceptionally hard to achieve this growth.
During the earnings call, O’Leary emphasized that the airline is needing to stimulate fares and bookings continually. He mentioned that both the close-in fares and performance have been disappointing, particularly as the company approaches peak travel months from July to September.
In addition to lower demand, Ryanair is grappling with increased labor costs and has attributed some blame to ongoing delays in aircraft deliveries from Boeing, a recurring issue for O’Leary. Despite having backed Boeing following an incident with a 737 Max 9 earlier this year, he has been vocal about the need for improvements from the manufacturer.
O’Leary also indicated that the airline’s customers are starting to feel the impact of inflation and slowing economic growth within the European Union. He suggested that operating fewer aircraft in the summer of 2025, compared to initial projections based on Boeing deliveries, may actually benefit the airline if consumer pressure continues to mount over the next year or 18 months.