Ryanair has expressed disappointment in its recent business performance, leading to investor dissatisfaction as well. The Irish budget airline’s stock has declined by 17% following a quarterly earnings report that fell short of expectations. Revenue remained steady at €3.6 billion ($4 billion), similar to the previous year, but profits experienced a significant drop, nearly halving to €336 million. CEO Michael O’Leary highlighted that while the airline is increasing passenger numbers, this growth comes at a cost.
O’Leary pointed out that although passenger traffic rose by 10% to 55 million, it requires aggressive pricing strategies to maintain this growth. He noted that booking performances, particularly as they approach peak months in July, August, and September, have been disappointing.
The airline is also grappling with rising labor costs and has indicated that delays from Boeing in aircraft deliveries have been problematic. Despite having backed Boeing following a mid-flight incident with a 737 Max 9 earlier this year, O’Leary has urged the manufacturer to improve its operations.
Moreover, O’Leary conveyed concerns that customers may be facing increased financial pressure as inflation and sluggish economic growth in the European Union take their toll. In light of this, he mentioned that operating with a reduced number of aircraft by summer 2025 could be beneficial for Ryanair, given the anticipated pressure on consumers over the next year and a half.