Ryanair has expressed disappointment regarding its recent business performance, leading to discontent among investors. The Irish budget airline’s stock has fallen 17% following a quarterly earnings report that disappointed expectations. The company’s revenue reached €3.6 billion ($4 billion), remaining steady compared to last year; however, profits have plummeted nearly by half to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, attracting them has required significant effort.
O’Leary emphasized that traffic growth is robust, with a 10% increase to 55 million passengers, but noted that this growth comes at a cost. He mentioned on the earnings call that the airline is continually needing to stimulate fares and bookings, which have not met anticipated performance levels leading into the peak summer months.
In addition to facing decreased demand, the airline is contending with rising labor costs, and O’Leary has attributed some issues to Boeing’s delivery delays—a concern he has voiced for years. Despite a recent mid-flight incident involving a 737 Max 9, O’Leary continues to push Boeing for better performance.
The CEO indicated that Ryanair’s customers seem to be feeling extra pressure as economic challenges, including inflation and sluggish growth in the European Union, take their toll. To adapt, he stated that Ryanair plans to reduce its aircraft capacity for the summer of 2025 compared to earlier schedules, which may ultimately prove beneficial if consumer spending remains constrained in the upcoming months.