Ryanair has expressed disappointment in its recent business performance, leading to a 17% decline in its stock value following a quarterly earnings report that fell short of expectations. The Irish low-cost airline reported revenue of €3.6 billion ($4 billion), consistent with last year’s figures, while profits plummeted nearly 50% to €336 million. CEO Michael O’Leary stated that although the airline is attracting more passengers—up 10% to 55 million—this growth comes at a significant cost.
During the earnings call, O’Leary mentioned that boosting traffic has required aggressive fare stimulation, with close-in fares and bookings falling below anticipated levels, especially leading into the peak months of July, August, and September.
Additionally, Ryanair is facing challenges from increasing labor costs and has attributed some issues to Boeing’s ongoing delivery delays, a recurring concern for O’Leary. Despite this, he has maintained support for the company even after a recent mid-flight incident involving a 737 Max 9.
O’Leary also noted that passengers may be feeling the strain of rising inflation and stagnating economic growth in the European Union, suggesting that a reduction in aircraft capacity might ultimately benefit Ryanair. He indicated that the airline would have less capacity in summer 2025 than initially planned due to Boeing’s delivery challenges, and he anticipates two years without significant capacity growth, which may align with the expected consumer pressures over the next 12 to 18 months.