Ryanair has expressed dissatisfaction with its business results, which has led to a decline in investor confidence. The budget airline from Ireland saw its stock plummet by 17% following the release of a quarterly earnings report that fell short of expectations. Revenue remained stable at €3.6 billion ($4 billion), which is comparable to last year, but profits nearly halved, falling to €336 million. CEO Michael O’Leary stated that while more customers are flying with Ryanair, attracting them is becoming increasingly challenging.
O’Leary noted that traffic increased by 10%, reaching 55 million passengers, but emphasized that this growth comes at a cost. He mentioned on the earnings call, “We are having to repeatedly stimulate fares and bookings, with disappointing performance in close-in bookings, especially as we approach the peak months of July, August, and September.”
Additionally, the airline is facing challenges due to rising labor costs and ongoing delays in aircraft deliveries from Boeing, which have been a recurring issue for O’Leary. Despite the ordeal with a mid-flight incident involving a 737 Max 9, he has consistently urged Boeing to improve its delivery performance.
O’Leary also noted that consumers in the European Union appear to be facing greater financial pressures than during the early stages of the COVID-19 recovery, with factors like inflation and slow economic growth taking their toll. He suggested that operating with a reduced number of aircraft could potentially benefit Ryanair.
He remarked, “We will have less capacity in summer 2025 than initially planned due to Boeing deliveries, and we will face two years of essentially no capacity growth. If consumers are under pressure for the next year or 18 months, that might not be the worst position to be in.”