Ryanair is expressing dissatisfaction with its recent business performance, which has also disappointed investors. The Irish budget airline’s stock price has dropped 17% following the release of its quarterly earnings report, which fell short of expectations. Revenue for the period was reported at €3.6 billion ($4 billion), consistent with the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, attracting them has required significant effort.
O’Leary mentioned that traffic growth remains strong, showing a 10% increase to 55 million passengers, but this growth is heavily reliant on pricing strategies. He indicated that the company has had to consistently stimulate fares and bookings, with close-in bookings particularly underperforming compared to expectations as the peak travel months approach.
Additionally, Ryanair is facing challenges such as rising labor costs and ongoing delivery delays from Boeing, a recurring issue for O’Leary. While he defended the airline after an incident earlier this year involving a 737 Max 9, he has long urged Boeing to improve its delivery schedule.
O’Leary also pointed out that Ryanair’s customers are increasingly feeling the effects of rising inflation and stagnant economic growth in the European Union, which could lead to a reduction in flight capacity for the airline by summer 2025. He suggested that having less capacity might ultimately serve Ryanair well during a time when consumer spending is under pressure.