Ryanair has expressed disappointment in its recent business performance, which has also affected investor sentiment, leading to a 17% drop in the airline’s stock following a quarterly earnings report that was weaker than expected. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which is comparable to last year’s figures. However, profits were significantly reduced, falling to €336 million.
CEO Michael O’Leary noted that while the number of passengers flying with Ryanair increased by 10% to 55 million, this growth is accompanied by challenges, including the need to stimulate ticket prices and bookings. He indicated that demand has been weaker than anticipated, particularly as the peak travel months of July, August, and September approach.
In addition to declining demand, Ryanair is facing higher labor costs and has pointed to delays in aircraft deliveries from Boeing as a contributing factor to its struggles. O’Leary has been critical of Boeing for years and remains frustrated with the situation, despite standing behind the company following recent operational issues with the 737 Max 9.
O’Leary also mentioned that consumers in the European Union seem to be feeling more financial pressure compared to earlier in the COVID-19 recovery phase. He indicated that Ryanair plans to operate with fewer jets in the summer of 2025 than initially planned, leading to two years of stagnated growth in capacity. He suggested that if economic pressures continue for consumers over the next year to 18 months, this could potentially benefit Ryanair in the long run.