Ryanair has expressed dissatisfaction with its recent business performance, which has led to a 17% drop in its stock value following the release of a less-than-expected quarterly earnings report. The Irish budget airline reported revenues of €3.6 billion ($4 billion), which are on par with last year’s figures. However, profits plummeted to €336 million, nearly half of what they were previously.
CEO Michael O’Leary acknowledged that while the airline is attracting more passengers—with a reported increase of 10%, totaling 55 million travelers—it is doing so at the expense of fare reductions and increased marketing efforts. O’Leary highlighted that close-in bookings have been disappointing as they approach the peak travel months of July, August, and September.
In addition to weaker demand, Ryanair is facing rising labor costs and delays in aircraft deliveries from Boeing. O’Leary has been vocal about his frustration with Boeing, particularly in light of recent issues, but has continued to support the company.
O’Leary also indicated that consumers are beginning to feel more financial pressure as inflation and stagnating economic growth impact spending in the European Union. He suggested that this challenging environment could result in a reduction of the airline’s scheduled capacity for summer 2025, with no significant growth anticipated over the next two years.
O’Leary concluded that having less capacity during this difficult economic period could potentially benefit Ryanair in the long run.