Ryanair has expressed disappointment in its recent business performance, leading to a 17% decline in its stock after the airline released a quarterly earnings report that fell short of expectations. The company’s revenue remained flat at €3.6 billion (approximately $4 billion), comparable to last year’s figures, while profits nearly halved to €336 million. CEO Michael O’Leary acknowledged that although more passengers are flying with Ryanair, it requires significant effort to achieve this increase.
During the earnings call, O’Leary noted a 10% rise in traffic, resulting in 55 million passengers, but highlighted that this growth comes at a cost. He mentioned a need to stimulate fares and bookings repeatedly, with a disappointing performance seen in close-in bookings leading into the peak travel months of July, August, and September.
In addition to weak demand, Ryanair is facing rising labor costs and has pointed to delays in aircraft deliveries from Boeing as a contributing factor to its challenges. Despite supporting the aircraft manufacturer after an incident this year involving a 737 Max 9, O’Leary has long urged Boeing to improve its delivery reliability.
O’Leary also observed that Ryanair’s customers seem to be experiencing more financial pressure compared to the earlier stages of the COVID-19 recovery. This has raised concerns regarding future capacity, as he indicated that the airline will operate with less capacity through summer 2025 than originally planned. He suggested that having no capacity growth over the following two years might not be detrimental if consumers continue to face economic pressures in the upcoming year to 18 months.