Ryanair is facing disappointment in its business results, mirroring investor sentiments as the airline’s stock has fallen by 17% following the release of a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), virtually unchanged from the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary acknowledged that while more passengers are flying with Ryanair, attracting them has required significant effort.
O’Leary noted on the earnings call that passenger traffic is up by 10%, reaching 55 million travelers, but emphasized that this growth is contingent on pricing strategies. He mentioned that recent close-in fares and booking performance have been disappointing, especially as the peak months of July, August, and September approach.
In addition to weak demand, Ryanair is contending with increased labor costs and highlighted ongoing issues with Boeing’s aircraft delivery timelines, a point O’Leary has raised for years. Despite a recent mid-flight incident involving a 737 Max 9, O’Leary has remained supportive of the manufacturer while urging for improvements.
Furthermore, O’Leary conveyed that customers are feeling more financial pressure in the wake of inflation and stagnant economic growth within the European Union. He suggested that operating a reduced number of aircraft might benefit Ryanair in the long run.
“We will have lower capacity in summer 2025 compared to our original Boeing delivery schedule, and we are facing two years of virtually no capacity growth,” O’Leary stated. “If consumers are under financial strain for the next year or 18 months, that might not be the worst situation for us.”