Ryanair has expressed disappointment over its business performance, which has led to a 17% decline in its stock value following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), consistent with the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary stated that while the airline managed to increase its passenger count to 55 million, up 10%, this growth comes at a significant price.
O’Leary highlighted that the company is facing challenges in fare stimulation and booking performance, particularly disappointing as it heads into the peak months of July, August, and September. The airline is also contending with rising labor costs and has criticized Boeing for ongoing delivery delays, a longstanding issue for the company.
He remarked that Ryanair’s customers seem to be facing more difficulties compared to earlier in the economic recovery from COVID-19. Reports indicate that years of inflation and slow economic growth in the European Union are starting to impact consumers. O’Leary mentioned that having less capacity as a result of Boeing’s delivery issues could ultimately benefit Ryanair, as the airline anticipates reduced growth for summer 2025 and potentially stagnant capacity for the next two years. He concluded by suggesting that operating under these conditions might not be the worst scenario, given the expected consumer pressure in the upcoming months.