Ryanair has expressed disappointment with its recent business performance, a sentiment echoed by its investors. The Irish budget airline’s stock has fallen by 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, while profits plummeted to €336 million.
CEO Michael O’Leary noted that while the airline is successfully increasing passenger numbers, it is facing challenges in achieving this. “Traffic growth is strong, up 10% to 55 million passengers, but it’s dependent on pricing,” he stated during the earnings call. He added that there has been a need to frequently adjust fares and bookings, with recent performance and close-in bookings being disappointing, especially leading into the peak travel months of July, August, and September.
In addition to declining demand, Ryanair is also contending with rising labor costs and has pointed fingers at Boeing over ongoing delivery delays. O’Leary has consistently urged Boeing to improve its operations, despite standing by the company after a mid-flight incident with a 737 Max 9 earlier this year.
O’Leary mentioned that consumers are feeling the impact of prolonged inflation and slowing economic growth in the European Union. This situation could lead to reduced capacity for Ryanair in the summer of 2025, as the airline expects to operate fewer aircraft than initially planned due to Boeing’s delays. “If the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be,” he concluded.