Ryanair is expressing disappointment over its recent business performance, which has led to discontent among investors. The Irish low-cost airline’s stock has fallen by 17% following a quarterly earnings report that was weaker than anticipated. The company’s revenue was reported at €3.6 billion ($4 billion), which is nearly unchanged from the previous year. However, profits have plummeted to €336 million, nearly half what they were.
CEO Michael O’Leary noted that while there has been a notable increase in passenger numbers—up 10% to 55 million—this growth is heavily reliant on pricing. He mentioned that the airline has been forced to continuously lower fares and stimulate bookings, which have not performed as well as expected, especially leading into the peak travel months of July, August, and September.
In addition to weaker demand, Ryanair is facing increased labor costs and is affected by delayed aircraft deliveries from Boeing, a longstanding issue for O’Leary. Despite previously expressing support for Boeing following an incident involving a 737 Max 9 earlier this year, he has repeatedly urged the manufacturer to improve its efficiency.
O’Leary further informed investors that Ryanair’s customers seem to be feeling the effects of ongoing inflation and slowing economic growth in the European Union, impacting their travel habits during the recovery from the COVID-19 pandemic. He suggested that reducing the number of aircraft in operation could ultimately benefit Ryanair in this challenging environment.
“We will have less capacity going into summer 2025 than we originally planned, and after that, we expect two years with no growth in capacity,” O’Leary stated. “If consumers are under pressure for the next year or 18 months, that might not be the worst scenario for us.”