Ryanair is expressing dissatisfaction with its recent business performance, which has resulted in a 17% decline in the airline’s stock following a quarterly earnings report that fell short of expectations. The Irish budget airline reported a revenue of €3.6 billion ($4 billion), consistent with figures from the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that although more passengers are flying with Ryanair, it requires considerable effort to achieve this growth.
O’Leary stated on the earnings call that traffic has grown 10%, reaching 55 million passengers, yet this growth comes at a cost. “We are having to stimulate fares and bookings repeatedly,” he explained, highlighting disappointing results in close-in bookings as the peak months of July, August, and September approach.
Adding to the challenges, Ryanair faces rising labor costs and has attributed some of its issues to Boeing’s delivery delays, a longstanding concern for O’Leary. While he has defended Boeing following a mid-flight incident involving a 737 Max 9, he has consistently urged them to improve their performance.
O’Leary also indicated that customers appear to be feeling more financial strain compared to the earlier stages of the COVID-19 recovery, as lingering inflation and slowing economic growth in the European Union begin to take a toll. As a result, O’Leary suggested that operating fewer aircraft may ultimately benefit Ryanair.
“We will have less capacity into summer 2025 than originally scheduled due to Boeing deliveries, leading to two years of essentially no capacity growth,” he stated. “If consumers face pressure for the next year to 18 months, that might not be the worst position for us.”