Ryanair is expressing disappointment in its business performance, a sentiment echoed by its investors as the airline’s stock has dropped 17% following a less-than-expected quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), roughly unchanged from last year, while profits saw a significant decline of nearly 50%, falling to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair—up 10% to 55 million—this growth is heavily influenced by pricing strategies.
During the company’s earnings call, O’Leary mentioned the challenge of stimulating fare and bookings amid a competitive landscape. He indicated that recent close-in bookings have been disappointing, particularly as the company enters the peak travel months of July, August, and September.
In addition to softer demand, Ryanair is facing rising labor costs and continues to contend with delays in aircraft deliveries from Boeing. O’Leary has been vocal about his frustrations with Boeing, particularly after a mid-flight incident involving a 737 Max 9 earlier this year.
O’Leary suggested that Ryanair’s customers may be feeling increased pressure due to ongoing inflation and sluggish economic growth within the European Union. He indicated that reducing flight capacity could ultimately benefit the airline, stating, “We will have less capacity into summer 2025 than we are originally scheduled to have.” He added that this situation may be advantageous as consumers face financial challenges over the next year or so.