Ryanair is expressing dissatisfaction with its business performance, which has also led to disappointment among investors. The stock of the Irish budget airline has dropped by 17% following the release of a weaker-than-anticipated quarterly earnings report. The airline reported a revenue of €3.6 billion ($4 billion), consistent with the previous year, but profits saw a significant decline, nearly halving to €336 million. CEO Michael O’Leary noted that while passenger traffic grew by 10% to 55 million, this was achieved at a lower price point, indicating the necessity for increased fare stimulation and bookings.
O’Leary mentioned the company’s struggles with demand, particularly during the peak months of July, August, and September, where close-in bookings and fares have been disappointing. In addition to reduced demand, Ryanair is also facing challenges from rising labor costs and has pointed fingers at Boeing for delays in aircraft deliveries, an ongoing frustration for O’Leary.
Despite an earlier incident involving a 737 Max 9, O’Leary continues to urge Boeing to improve its performance. He also noted that customers appear to be feeling the strains of inflation and slow economic growth in the European Union, which could potentially lead to Ryanair managing fewer aircraft in the future.
O’Leary stated that the airline expects to have less capacity in summer 2025 than initially planned due to Boeing’s delivery setbacks, indicating two years of essentially no capacity growth. He suggested that if consumer pressures continue for the next year or 18 months, maintaining lower capacity might be beneficial for the airline.