Ryanair has expressed dissatisfaction with its recent business results, which has led to disappointment among investors. The Irish budget airline’s stock has dropped by 17% following a quarterly earnings report that fell short of expectations. The company reported a revenue of €3.6 billion ($4 billion), almost unchanged from the previous year, but its profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, attracting them is increasingly challenging.
O’Leary mentioned during the earnings call that traffic growth is robust, with a 10% increase to 55 million passengers, but this growth comes at a cost. He stated, “We’re having to repeatedly stimulate fares and bookings,” adding that close-in fares and bookings have been disappointing, particularly leading into the peak months of July, August, and September.
In addition to the drop in consumer demand, Ryanair is facing heightened labor costs and has attributed part of its struggles to delays in aircraft deliveries from Boeing, a recurring issue for O’Leary. Despite having defended Boeing after a mid-flight incident involving a 737 Max 9 earlier this year, he has long urged the manufacturer to improve its delivery performance.
O’Leary also pointed out that Ryanair’s customers seem to be experiencing more financial strain than they did during the initial phase of the COVID-19 recovery. According to reports, ongoing inflation and stagnant economic growth are beginning to impact consumers in the European Union. Given this context, O’Leary suggested that operating fewer aircraft might ultimately benefit Ryanair.
“We will have less capacity in summer 2025 than we had originally scheduled with our Boeing deliveries,” he said. “And 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.”