Ryanair has expressed concerns over its recent business performance, leading to a 17% drop in its stock following a disappointing quarterly earnings report. The Irish budget airline’s revenue remained stagnant at €3.6 billion ($4 billion), the same as the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary noted that although the airline is increasing passenger numbers, it faces challenges in pricing and bookings.
O’Leary highlighted a 10% increase in passenger traffic to 55 million, but emphasized that this growth comes at a cost. He mentioned that the company is having to frequently offer fare discounts, and that recent booking patterns have been weaker than anticipated as the peak summer months approach.
Additionally, Ryanair is contending with rising labor costs and has attributed some difficulties to Boeing’s delivery delays, a recurring issue for the airline. Despite backing Boeing after a mid-flight incident involving the 737 Max 9 earlier this year, O’Leary has urged the manufacturer to improve its performance.
He also pointed out that customers are facing more financial strain as the effects of inflation and stagnant economic growth become more apparent in the European Union. Looking ahead, O’Leary mentioned that Ryanair is likely to operate fewer aircraft into the summer of 2025 than originally planned, which could be beneficial if consumer demand continues to face challenges over the next year or more.