Ryanair has expressed disappointment over its recent business performance, a sentiment echoed by its investors. The stock of the Irish low-cost airline has plummeted by 17% following a quarterly earnings report that fell short of expectations. The airline reported revenue of €3.6 billion ($4 billion), which is roughly equivalent to last year’s figures. However, profits took a significant hit, nearly halving to €336 million.
CEO Michael O’Leary noted that while the number of passengers flying with Ryanair has increased by 10% to 55 million, the airline is facing challenges. “Traffic growth is strong, but it comes at a price,” he stated during the earnings call. He highlighted the need to stimulate fares and bookings repeatedly, pointing out disappointing performance in last-minute bookings as the peak summer season approaches.
The airline is also contending with rising labor costs and ongoing delivery delays from Boeing, which O’Leary has criticized for years. Despite recent issues, including a mid-flight incident involving a 737 Max 9, he has maintained a level of support for the manufacturer while urging improvement.
Additionally, O’Leary mentioned that Ryanair’s customers appear to be feeling the effects of prolonged inflation and stagnating economic growth in the European Union, which might lead to reduced capacity for the airline. He indicated that the company will have less capacity than initially planned for summer 2025 due to Boeing delivery issues, resulting in a two-year period with no growth in capacity. O’Leary suggested that this could be advantageous if consumers face financial pressures in the coming months.