Ryanair has reported disappointing business results, leading to discontent among investors. The Irish budget airline’s stock has fallen by 17% following a quarterly earnings report that fell short of expectations. Revenue remained stable at €3.6 billion ($4 billion), similar to the previous year, but profits were nearly cut in half to €336 million. CEO Michael O’Leary acknowledged that while passenger numbers are increasing, the airline is working harder to achieve this.
O’Leary noted that traffic growth is up 10% with 55 million passengers, but this success comes at a cost. The airline has had to continuously lower fares and stimulate bookings. He also mentioned that the last-minute bookings have been weaker than anticipated, particularly ahead of the busy summer months.
In addition to demand issues, Ryanair is grappling with rising labor costs and has attributed some challenges to delivery delays from Boeing, which have frustrated O’Leary for years. Despite past incidents, he has supported the manufacturer but has urged them to improve.
O’Leary indicated that customers are facing more difficulties than in the earlier stages of the economic recovery following COVID-19. He pointed out that ongoing inflation and sluggish economic growth within the European Union are affecting consumer behavior. As a result, Ryanair may operate with a reduced number of aircraft in the coming years.
“We will have less capacity into summer 2025 than we originally planned with our Boeing deliveries, leading us into two years with essentially no growth in capacity,” O’Leary stated. He added that if consumers remain under pressure for the next year to 18 months, this situation might not be entirely unfavorable for Ryanair.