Ryanair has expressed disappointment in its business performance, reflecting a larger concern among investors. The Irish budget carrier’s shares have dropped by 17% following a quarterly earnings report that fell short of expectations. The airline reported revenue of €3.6 billion ($4 billion), which is on par with last year, but profits plummeted by nearly 50% to €336 million. CEO Michael O’Leary noted an increase in passenger numbers but indicated that attracting customers has required significant effort.
Traffic growth was robust, with a 10% increase bringing the total to 55 million passengers. However, O’Leary emphasized that this growth comes at a cost, as the airline has had to continuously incentivize fares and bookings. He pointed out that close-in bookings have been notably weaker than projected, particularly leading into the peak travel months of July, August, and September.
In addition to reduced demand, the airline is navigating higher labor costs and has blamed Boeing for delivery delays, a longstanding frustration for O’Leary. Despite his support for the company through recent challenges, he has consistently urged Boeing to improve its performance.
O’Leary also informed investors that consumers are showing signs of strain as years of inflation and slow economic growth impact the European Union. He indicated that operating fewer aircraft might benefit Ryanair in the near future.
“Our capacity for summer 2025 will be less than initially planned due to Boeing delays, and we will face two years of essentially no capacity growth,” O’Leary confirmed. “If consumers are under pressure for the next year to 18 months, that situation might not be unfavorable for us.”