Ryanair has expressed disappointment in its business performance, leading to a 17% drop in its stock following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenues of €3.6 billion ($4 billion), nearly unchanged from the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, it requires significant effort to achieve this.
Passenger traffic grew by 10% to reach 55 million, but O’Leary indicated that this growth comes at a cost, stating, “We’re having to repeatedly stimulate fares and bookings.” He also highlighted disappointing close-in bookings and fares, especially approaching the peak summer months of July, August, and September.
In addition to weaker demand, Ryanair is facing increased labor costs and has attributed some delays to Boeing’s delivery issues, which have been a long-standing concern for O’Leary. Despite previously defending the company following a mid-flight incident with a 737 Max 9, he has urged Boeing to improve its operations.
Moreover, O’Leary noted that Ryanair customers appear to be facing more challenges than during the initial phases of the COVID-19 recovery, as factors such as inflation and stagnant economic growth in the European Union begin to affect consumer behavior. He suggested that operating fewer aircraft could be advantageous for Ryanair, stating, “We will have less capacity into summer 2025 than we are originally scheduled to have,” and that this situation may benefit the airline if consumer pressure persists over the next year to 18 months.