Ryanair is expressing dissatisfaction with its recent business performance, a sentiment echoed by its investors. The Irish budget airline’s stock has plummeted by 17% following the release of its quarterly earnings report, which fell short of expectations. The company’s revenue remained flat at €3.6 billion ($4 billion), similar to the previous year, but profits took a significant hit, dropping nearly 50% to €336 million. CEO Michael O’Leary highlighted the challenge of increasing passenger numbers, stating that while there has been a rise in traffic to 55 million passengers, it is being achieved at a cost.
O’Leary noted during the earnings call that although passenger growth is robust at 10%, the company is having to continuously stimulate demand through fares and bookings, which has not met anticipated targets, especially as they approach the busiest months of July, August, and September.
In addition to softer demand, the airline faces rising labor costs and also pointed to delays in Boeing’s aircraft deliveries as a contributing factor, an issue O’Leary has long criticized. Despite the challenges, he remains optimistic, suggesting that the current economic climate in the European Union, marked by inflation and slow growth, may inadvertently benefit Ryanair by reducing the number of flights it operates.
He mentioned, “We will have less capacity into summer 2025 than we were originally scheduled to have with our Boeing delivery, and then, we’re entering two years of essentially no capacity growth at all. If the consumer is going to be under pressure for the next year or 18 months, that might not be the worst position to be in.”