Ryanair is facing challenges in its business performance, leading to disappointment among investors as the airline’s stock has dropped 17% following a quarterly earnings report that fell short of expectations. The budget airline announced revenues of €3.6 billion ($4 billion), which is on par with last year’s figures. However, profits have nearly halved, plummeting to €336 million. CEO Michael O’Leary noted that while the airline is successfully attracting more passengers—reporting a 10% increase to 55 million—the pricing strategies are becoming increasingly difficult, necessitating constant fare stimulation.
O’Leary expressed concerns about disappointing close-in fare bookings, particularly as the company approaches peak travel months in July, August, and September. Additionally, Ryanair is grappling with rising labor costs and has attributed some of its struggles to delays in aircraft deliveries from Boeing, a recurring issue for O’Leary. Despite his frustrations, he remains committed to the company following a mid-flight incident involving a 737 Max 9.
According to O’Leary, customers are beginning to feel the effects of long-term inflation and slowed economic growth across the European Union, which could impact travel demand. He indicated that the airline will have reduced capacity in the summer of 2025 compared to what was initially planned due to delays in Boeing deliveries. He suggested that operating with fewer aircraft may actually benefit Ryanair if consumer pressure continues for the next year to 18 months.