Ryanair has expressed disappointment regarding its business performance, which has in turn led to dissatisfaction among investors. The Irish budget airline’s stock has plummeted 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), virtually unchanged from the previous year, but profits plunged nearly 50% to €336 million. CEO Michael O’Leary stated that while more passengers are flying with Ryanair, attracting them has required significant effort.
During the earnings call, O’Leary highlighted that passenger traffic increased by 10% to 55 million, but emphasized that such growth comes at a cost. He noted that fare stimulation and bookings have been disappointing, particularly in the lead-up to the peak travel months of July, August, and September.
In addition to a decline in demand, Ryanair is facing heightened labor costs, and O’Leary has attributed some challenges to continued delays in Boeing aircraft deliveries. Although he has defended the company following an incident with a 737 Max 9 earlier this year, he has also urged Boeing to address its delivery issues.
Furthermore, O’Leary remarked that Ryanair’s customers seem to be experiencing more difficulties compared to the earlier phases of the economic recovery from COVID-19, noting that prolonged inflation and slowing economic growth in the European Union are starting to affect consumer behavior. He suggested that operating with fewer aircraft might ultimately benefit Ryanair.
“We will have less capacity for summer 2025 than we originally planned due to Boeing delivery issues, and for the next two years, there will be essentially no growth in capacity,” O’Leary explained. “If consumers are under financial pressure for the next year or 18 months, being in that situation might not be the worst outcome.”