Ryanair is expressing disappointment over its business performance, which has led to a significant drop in investor confidence. The Irish low-cost airline’s stock has fallen by 17% following a quarterly earnings report that underperformed expectations. The company’s revenue was reported at €3.6 billion ($4 billion), nearly unchanged from the previous year. However, profits plummeted by almost half to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, the airline is having to exert considerable effort to attract them.
O’Leary highlighted that traffic growth is strong, with passenger numbers increasing by 10% to reach 55 million. However, he pointed out that this growth is heavily reliant on pricing strategies. Demand for close-in bookings has been disappointing, particularly leading into peak months like July, August, and September.
Additionally, Ryanair is facing challenges from rising labor costs and has criticized Boeing for its ongoing delivery delays, which have been a persistent issue for the airline. Despite a recent mid-flight incident involving a 737 Max 9, O’Leary has remained supportive of Boeing while urging the manufacturer to improve its operations.
Moreover, O’Leary mentioned that consumers appear to be feeling the effects of years of inflation and slowing economic growth throughout the European Union. This situation might lead to reduced capacity for Ryanair into summer 2025, as it will have fewer aircraft than initially planned due to Boeing’s delays. O’Leary suggested that if consumers continue to face financial pressures in the coming year or 18 months, operating with less capacity might ultimately benefit the airline.