Ryanair is facing challenges in its business performance, resulting in a 17% drop in its stock following a disappointing quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, but saw a significant decline in profits, which nearly halved to €336 million. CEO Michael O’Leary noted that while the number of passengers increased by 10% to 55 million, the airline had to make significant efforts to boost fares and bookings, especially in preparation for the peak travel months of July, August, and September.
O’Leary attributed part of the company’s struggles to softening demand, higher labor costs, and ongoing delays in aircraft deliveries from Boeing, an issue he has consistently criticized. Despite these challenges, he mentioned that the airline’s customers seem to be feeling the effects of rising inflation and slower economic growth in the European Union.
Looking ahead, O’Leary indicated that Ryanair would reduce its capacity for summer 2025 due to the delays with Boeing, which could ultimately work to the airline’s advantage if consumer pressures continue over the next 18 months. He 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.”