Ryanair has expressed disappointment in its business performance, mirroring the sentiments of its investors. The Irish budget airline’s stock has plummeted 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue reached €3.6 billion ($4 billion), remaining steady compared to last year. However, profits were almost halved, dropping to €336 million. CEO Michael O’Leary noted an increase in passenger numbers, stating that getting people on their flights requires significant effort.
“Traffic growth is strong, with a 10% increase to 55 million passengers, but it comes at a cost,” he mentioned during the earnings call. He also highlighted concerns about disappointing fare performance and bookings as the peak travel months of July, August, and September approach.
In addition to fluctuating demand, Ryanair is grappling with rising labor costs and has pointed fingers at Boeing’s delivery delays, a long-standing frustration for O’Leary. Despite standing by the airline after a recent in-flight incident involving a 737 Max 9, he has consistently urged the aircraft manufacturer to improve its performance.
O’Leary conveyed to investors that his airline’s customers seem to be facing more challenges compared to earlier in the economic recovery following COVID-19. Reports indicate that years of inflation and stagnant growth in the European Union are impacting consumer behavior. O’Leary suggested that operating with a reduced number of aircraft might be advantageous for Ryanair in the current environment.
“As summer 2025 approaches, we anticipate having less capacity than initially planned due to Boeing’s delivery issues, leading to a couple of years with essentially no capacity growth,” O’Leary stated. “If consumers are feeling pressure over the next year to 18 months, this could be a strategic position for us.”