Ryanair has expressed disappointment with its latest business performance, reflecting investor concerns as well. The Irish budget airline’s stock has fallen by 17% following 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 that while more passengers are flying with Ryanair, achieving this growth is increasingly challenging.
O’Leary highlighted that traffic increased by 10% to 55 million passengers, but this growth comes at a cost. He indicated that the airline has had to frequently lower fares and stimulate bookings, particularly as performance has lagged in the lead-up to the peak travel months of July, August, and September.
In addition to muted demand, Ryanair is also facing higher labor costs and ongoing issues related to Boeing’s delivery delays. O’Leary has frequently criticized Boeing for these delays, which have been a contentious issue for some time. Despite a recent incident involving a 737 Max 9, he has continued to support the airline’s operational capabilities.
O’Leary pointed out that customers seem to be feeling the effects of sustained inflation and slow economic growth within the European Union, which may lead to reduced capacity for Ryanair in the summer of 2025. He noted, “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. If the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be.”