Ryanair has expressed dissatisfaction with its recent business performance, leading to disappointment among its investors. The Irish low-cost airline’s shares have dropped by 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue remained stable at €3.6 billion ($4 billion), the same as the previous year, but profits saw a significant decline, nearly halved to €336 million. CEO Michael O’Leary noted that while passenger numbers are increasing, the airline is facing challenges in maintaining profitability.
O’Leary reported a 10% rise in passenger traffic, totaling 55 million, but emphasized that this growth comes at a cost. He mentioned that the airline has had to continuously adjust fare prices and stimulate bookings, especially disappointing is the performance of close-in bookings heading into peak months like July, August, and September.
In addition to weak demand, Ryanair is contending with rising labor costs and has cited Boeing’s delivery delays as a contributing factor. Despite previously supporting Boeing after a mid-flight incident with a 737 Max 9, O’Leary has urged the manufacturer to improve its delivery reliability.
He also highlighted that Ryanair’s customers seem to be feeling the economic strain more than during the initial recovery from the COVID-19 pandemic, with inflation and sluggish economic growth taking their toll on consumers in the European Union. O’Leary suggested that having a smaller fleet in summer 2025 than initially planned, combined with two years of no capacity growth, might actually be advantageous if consumer pressures persist over the next year to 18 months.