Ryanair is expressing disappointment over its latest business performance, which in turn has led to investor discontent. The Irish budget airline saw its stock plummet by 17% following the release of a quarterly earnings report that fell short of expectations. While revenue held steady at €3.6 billion ($4 billion), profits nearly halved to €336 million. CEO Michael O’Leary noted an increase in passenger traffic, now at 55 million, marking a 10% growth, but emphasized that this growth comes at a cost.
During the company’s earnings call, O’Leary remarked on the necessity of stimulating fares and bookings, highlighting that close-in booking performance has been disappointing, especially as the peak months of July, August, and September approach.
In addition to weaker consumer demand, Ryanair is grappling with rising labor costs and has pointed fingers at Boeing’s delivery delays, a long-standing issue for O’Leary. Despite recent challenges, including an incident involving a 737 Max 9, O’Leary has maintained pressure on Boeing to enhance its operations.
O’Leary also conveyed concern that his airline’s customers seem to be feeling the impact of ongoing inflation and sluggish economic growth in the European Union, suggesting that operating fewer aircraft may ultimately benefit Ryanair. He stated, “We will have less capacity into summer 2025 than originally planned due to Boeing’s delivery schedule, leading to two years without capacity growth.” He added that if consumers are facing pressure in the coming year or 18 months, this might not be the worst position for the airline.