Ryanair has expressed disappointment over its recent business performance, which has also led to investor dissatisfaction. The Irish budget airline’s stock has fallen 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue reached €3.6 billion ($4 billion), remaining largely consistent with the previous year, while profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, attracting them has required significant effort.
O’Leary highlighted that passenger traffic has increased by 10%, totaling 55 million passengers, but stressed that this growth has come at a cost. He mentioned on the earnings call that the airline is needing to consistently lower ticket fares and promote bookings. He also expressed disappointment with close-in bookings as they have not met expectations, especially leading into the busy travel months of July, August, and September.
Additionally, the airline is facing challenges from rising labor costs and has attributed part of its struggles to delays in aircraft deliveries from Boeing, an issue O’Leary has criticized for years. Despite a recent incident involving a 737 Max 9, O’Leary remains firm in holding Boeing accountable for its delivery issues.
O’Leary also informed investors that consumers are showing signs of economic strain, as years of inflation and stagnating growth are affecting individuals in the European Union. He suggested that the airline may benefit from operating fewer aircraft, stating that Ryanair will have reduced capacity for summer 2025 compared to initial delivery schedules. He indicated that in the face of potential consumer pressure over the next year to 18 months, maintaining a smaller operational scale might not be unfavorable for the airline.