Ryanair has expressed dissatisfaction with its recent business performance, which has also led to disappointment among its investors. The Irish low-cost airline saw its stock decline by 17% following the release of a quarterly earnings report that fell short of expectations. The company recorded revenue of €3.6 billion ($4 billion), roughly unchanged from the previous year, while profits plunged by nearly half to €336 million. CEO Michael O’Leary noted that despite an increase in passenger numbers—up 10% to 55 million—significant effort is required to maintain this growth.
During the earnings call, O’Leary remarked on the need for continual fare and booking incentives, expressing disappointment in the performance of last-minute bookings leading into the peak travel months of July, August, and September.
Additionally, Ryanair is facing challenges from increasing labor costs and has attributed part of its issues to delays in aircraft deliveries from Boeing, a recurring concern for O’Leary. Despite recent difficulties, he reassured investors that their customers are experiencing a tougher economic climate compared to the earlier stages of recovery from the COVID-19 pandemic. Reports indicate that inflation and slow economic growth are impacting consumers in the European Union.
O’Leary also mentioned that the airline would have less capacity available for summer 2025 than initially planned due to these Boeing delivery issues, with two years of virtually no capacity growth expected. He suggested that if consumer spending remains constrained over the next year to 18 months, this might not harm Ryanair’s position in the market.