Ryanair has expressed dissatisfaction with its recent business performance, leading to a 17% drop in its stock value following a disappointing quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which remained unchanged from the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that while the number of passengers increased by 10% to 55 million, achieving this growth came at a cost.
During the earnings call, O’Leary explained that the airline had to continuously adjust fares and stimulate bookings to maintain traffic. He pointed out that recent booking patterns had been weaker than anticipated, especially leading into the busy summer months of July, August, and September.
In addition to the drop in demand, Ryanair is contending with rising labor costs and has criticized Boeing for ongoing delivery delays, a long-standing issue for the airline. O’Leary has been vocal in demanding improvements from the aircraft manufacturer, despite recent incidents involving the 737 Max 9.
O’Leary also indicated that Ryanair’s customers appear to be feeling more financial strain compared to earlier phases of the COVID-19 recovery, as inflation and slow economic growth impact spending in the European Union. He mentioned that a reduction in scheduled capacity for summer 2025 could prove beneficial if consumer pressure continues over the next year or 18 months, suggesting that maintaining fewer jetliners may be a strategic advantage for the airline.