Ryanair has expressed disappointment in its recent business performance, leading to a 17% drop in its stock value following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenues of €3.6 billion (approximately $4 billion), which is on par with last year’s figures. However, profits took a significant hit, falling nearly 50% to €336 million. CEO Michael O’Leary noted that while more travelers are using Ryanair’s services, achieving this growth requires considerable effort.
O’Leary highlighted that passenger traffic grew by 10%, reaching 55 million, but emphasized the necessity of stimulating fare pricing and bookings to maintain this growth. He indicated that bookings for the peak summer months of July, August, and September have been disappointing and weaker than anticipated.
In addition to declining demand, Ryanair is facing increased labor costs and ongoing delivery delays from Boeing, which O’Leary has criticized for years. While he has remained supportive of the company amidst operational challenges, including a recent technical issue with a 737 Max 9, he has continuously urged Boeing to improve its performance.
O’Leary also observed that Ryanair’s customers seem to be feeling the financial strain as inflation and stagnant economic growth impact the European Union. In light of these economic pressures, he noted that operating a reduced number of aircraft might not be detrimental for the airline moving forward.
Looking ahead, O’Leary stated that Ryanair will have lower capacity in the summer of 2025 than initially planned due to Boeing delivery issues, with two years of minimal capacity growth expected. He suggested that maintaining a lower operational capacity could be advantageous if consumer spending remains under pressure for the next year to 18 months.