Ryanair has expressed disappointment over its recent business performance, a sentiment echoed by its investors as the airline’s stock has fallen by 17% following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which remains consistent with last year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted an increase in passenger numbers, with traffic up by 10%, reaching 55 million passengers. However, he emphasized that achieving this growth has required considerable effort.
During the earnings call, O’Leary explained the need for the airline to continually stimulate fares and bookings, which has turned out to be more challenging than anticipated as the peak travel months of July, August, and September approach. The airline faces challenges not only from decreased demand but also from rising labor costs and ongoing issues related to Boeing’s delivery delays, a topic O’Leary has frequently criticized.
Additionally, O’Leary indicated that passengers may be feeling the effects of prolonged inflation and economic slowdowns within the European Union, suggesting that the company might benefit in the long run from potentially operating with fewer aircraft. He stated that Ryanair would have reduced capacity for summer 2025 compared to original schedules due to Boeing’s delivery setbacks, and that a period of no capacity growth could be advantageous if consumer pressures continue over the next year to 18 months.