Ryanair has expressed disappointment in its recent business performance, leading to a 17% drop in its stock value following a less-than-expected quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), consistent with the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted an increase in passenger traffic, which rose 10% to 55 million, but emphasized that this growth has come at a cost, requiring significant effort from the company. He highlighted that fare stimulation and booking performance, particularly leading into peak months of July, August, and September, have been disappointingly low.
Additionally, Ryanair is facing challenges due to increased labor costs and ongoing delivery delays from Boeing, a recurring issue for O’Leary, despite his support for the company following an incident involving a 737 Max 9 earlier in the year. He acknowledged that Ryanair’s customers seem to be experiencing more difficulties compared to the earlier phase of the post-COVID economic recovery, as rising inflation and stagnant economic growth impact consumers across the European Union.
Looking towards the future, O’Leary stated that the airline will have reduced capacity for summer 2025 than initially planned due to Boeing’s delivery issues, with two years of little to no capacity growth expected. He remarked that if consumer pressures persist over the next year to 18 months, this reduction in capacity may ultimately benefit Ryanair.