Ryanair has expressed disappointment regarding its recent business performance, which has also led to investor dissatisfaction. The Irish low-cost airline saw its stock price drop by 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue remained steady at €3.6 billion ($4 billion), similar to last year’s figures. However, profits nearly halved to €336 million. CEO Michael O’Leary noted that while the airline is attracting more passengers, it is facing challenges in maintaining its earnings.
During the earnings call, O’Leary commented on the company’s performance, stating, “Traffic growth is strong, up 10% to 55 million passengers, but it’s only strong at a price.” He added that the airline has been forced to frequently adjust fares and booking strategies, as close-in bookings have been weaker than anticipated, especially heading into the peak months of July, August, and September.
In addition to lower demand, Ryanair is contending with rising labor costs and has partially attributed its struggles to delays in aircraft deliveries from Boeing, a longstanding issue for O’Leary. Despite his support for the company following a mid-flight incident involving a Boeing 737 Max 9, he has urged the manufacturer to improve its operations.
O’Leary also remarked that consumers are showing signs of financial strain, a situation exacerbated by years of inflation and sluggish economic growth within the European Union. As a result, he noted that operating with reduced aircraft capacity might benefit Ryanair in the near future.
“We will have less capacity in summer 2025 than initially scheduled due to delays with our Boeing deliveries, and we are looking at two years of essentially no capacity growth,” O’Leary explained. “If consumers are going to face pressure over the next year or 18 months, that may not be the worst position for us to be in.”