Ryanair has expressed disappointment in its recent business performance, resulting in a 17% drop in the airline’s stock following a quarterly earnings report that fell short of expectations. The company’s revenue remained steady at €3.6 billion ($4 billion), matching figures from the previous year; however, profits nearly halved to €336 million. CEO Michael O’Leary noted an increase in passenger numbers, reaching 55 million, which represents a 10% growth, but emphasized that the airline is having to work hard to maintain these figures.
During the earnings call, O’Leary remarked that although traffic is strong, it is only robust at higher prices, indicating repeated efforts to stimulate both fares and bookings. He reported disappointing performance in close-in bookings heading into the peak months of July, August, and September.
In addition to decreased demand, Ryanair is facing higher labor costs and continues to grapple with delays in aircraft deliveries from Boeing, an issue that O’Leary has criticized. Despite standing by Boeing after a recent incident involving a 737 Max 9, he has long urged the manufacturer to improve its operations.
O’Leary acknowledged that Ryanair’s customers may be experiencing more financial strain than they did during the early stages of the economic recovery following COVID-19. Factors such as inflation and stagnating economic growth in the European Union are impacting consumer behavior. In light of these challenges, he mentioned that Ryanair will adjust its fleet for summer 2025, reducing its capacity compared to original delivery schedules from Boeing. He suggested that operating with fewer planes could potentially benefit the airline if consumer demand continues to face pressure.