Ryanair has expressed disappointment with its business performance, which has also left investors dissatisfied. The Irish budget airline’s stock has fallen by 17% following a quarterly earnings report that failed to meet expectations. Revenue remained stable at €3.6 billion ($4 billion), comparable to last year, while profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with the airline, it requires significant effort to attract them.
On the company’s earnings call, O’Leary mentioned that passenger traffic increased by 10% to 55 million, but emphasized that this growth is dependent on pricing strategies. He acknowledged challenges in fare stimulation and noted disappointing close-in bookings, particularly leading into the peak months of July, August, and September.
Additionally, Ryanair is confronting higher labor costs and has attributed part of its challenges to Boeing’s delivery delays, a recurring issue for O’Leary. Despite this, he remains supportive of the company following recent incidents, including a mid-flight door issue on a 737 Max 9, while continuing to urge Boeing to improve its delivery performance.
O’Leary pointed out that customers appear to be facing more economic pressure than earlier in the post-COVID recovery, as inflation and stagnant economic growth impact consumers in the European Union. This situation may inadvertently benefit Ryanair, as O’Leary indicated that the airline will have less capacity for summer 2025 compared to previous projections due to Boeing’s delays. He stated that the absence of capacity growth over the next two years might be advantageous if consumers continue to feel economic strain.