Ryanair has expressed concerns about its recent business performance, much to the dismay of its investors. The airline’s stock has fallen by 17% following the release of a quarterly earnings report that fell short of expectations. Revenue remained steady at €3.6 billion ($4 billion), similar to the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary mentioned that although the airline is increasing passenger numbers, it requires significant effort to maintain this growth.
O’Leary noted a 10% rise in passenger traffic, totaling 55 million travelers, but emphasized that this growth comes at a cost. He highlighted the need for aggressive fare stimulation, stating that the last-minute bookings have been disappointing as the peak travel months of July, August, and September approach.
In addition to the decline in consumer demand, Ryanair is grappling with rising labor costs and has criticized Boeing for ongoing delivery delays, a persistent frustration for O’Leary. Despite some incidents, such as a mid-flight door plug failure on a 737 Max 9 earlier this year, O’Leary has remained supportive of the company’s operations while urging Boeing to improve its performance.
O’Leary has also indicated that Ryanair’s customers are experiencing more challenges than during the initial phases of the post-COVID economic recovery. With inflation and stagnant growth affecting consumers in the European Union, he suggested that reduced aircraft capacity may actually benefit Ryanair in the long run.
“We anticipate having less capacity in the summer of 2025 compared to our original schedule with Boeing, and that will extend for two years with essentially no capacity growth,” O’Leary stated. “If consumer pressure persists over the next year or 18 months, this might not be the worst position for us to be in.”