Ryanair is expressing disappointment in its business performance, leading to investor discontent as well. The airline’s stock has dropped by 17% following the release of a disappointing quarterly earnings report. Revenue stood at €3.6 billion ($4 billion), remaining unchanged from the previous year, while profits fell significantly to €336 million. CEO Michael O’Leary noted that while the airline is successfully attracting more passengers, it is increasingly challenging to maintain this momentum.
“Traffic growth is strong, with a 10% increase to 55 million passengers, but this growth is largely reliant on pricing strategies,” he stated during the earnings call. O’Leary added that the company has been forced to continuously stimulate fares and bookings, with close-in bookings showing disappointing performance as they approach peak travel months.
The airline is grappling with lower demand and escalating labor costs, and O’Leary attributed part of the blame to delays in aircraft deliveries from Boeing, a longstanding issue for the company. He has remained supportive of Boeing despite recent operational challenges, urging the manufacturer to improve its delivery schedule.
Furthermore, O’Leary suggested that Ryanair’s customers are facing tougher financial conditions compared to the early stages of the COVID-19 recovery, with inflation and slowing economic growth affecting consumers in the European Union. He speculated that a reduction in flight capacity might not be disadvantageous for Ryanair during this period of economic strain.
“We will have less capacity in summer 2025 than initially planned due to Boeing delivery issues, leading to two years of little to no capacity growth,” O’Leary explained. “If consumer pressure continues over the next year or 18 months, this might prove to be a strategic advantage.”