Ryanair has expressed disappointment with its recent business performance, which has also affected investor sentiment. The budget airline’s stock has plummeted by 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue remained flat at €3.6 billion ($4 billion) compared to the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary noted an increase in passenger numbers, reaching 55 million—an increase of 10%—but emphasized that this growth comes at a cost.
O’Leary mentioned during the earnings call that the company has been forced to frequently lower fares to stimulate bookings, which have shown disappointing performance as the peak travel months of July, August, and September approach. In addition to weak demand, Ryanair is navigating higher labor costs and has criticized Boeing for ongoing delivery delays, a persistent frustration for the CEO.
He acknowledged that customers might be feeling more economic pressure as inflation and slow growth impact the spending power of those in the European Union. This situation may lead to a need for fewer aircraft in the coming summer seasons.
O’Leary stated, “We will have less capacity into summer 2025 than we are originally scheduled to have with our Boeing delivery, and then, we’re into two years of essentially no capacity growth at all.” He suggested that if consumer spending continues to be strained over the next year to 18 months, this might not necessarily be detrimental for Ryanair.