Ryanair has expressed dissatisfaction with its recent business performance, leading to disappointment among investors as well. The stock of the Irish budget airline has fallen by 17% following the release of a quarterly earnings report that fell short of expectations. The airline reported revenues of €3.6 billion ($4 billion), nearly unchanged from the previous year, while profits dropped significantly to €336 million. CEO Michael O’Leary mentioned that although there has been an increase in passenger numbers, the airline is having to exert considerable effort to boost traffic.
During the earnings call, O’Leary noted, “Traffic growth is robust, up 10% to 55 million [passengers], but it’s coming at a price. We are continually having to stimulate fares and bookings.” He highlighted that recent performance and close-in bookings were disappointing, particularly as the peak travel months of July, August, and September approach.
In addition to softer demand, Ryanair is grappling with rising labor costs and has attributed some of its challenges to delays in aircraft deliveries from Boeing, a recurring concern for O’Leary. Despite previous incidents involving the 737 Max 9, he has maintained pressure on Boeing for improved delivery schedules.
O’Leary also indicated that his airline’s customers seem to be feeling the effects of inflation and sluggish economic growth within the European Union, which may impact future travel patterns. He mentioned that Ryanair would have less capacity in the summer of 2025 compared to original delivery schedules from Boeing. “If consumers are going to be under pressure for the next year or 18 months, that might not be the worst place to be,” he remarked.