Ryanair has expressed disappointment in its business performance, prompting similar feelings among investors. The Irish budget airline’s stock has plummeted by 17% following a quarterly earnings report that fell short of expectations. Revenue stood at €3.6 billion ($4 billion), nearly unchanged from the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while the airline is attracting more passengers—reporting a 10% increase to 55 million passengers—this growth comes at a price, necessitating ongoing fare stimulation and resulting in weaker-than-expected close-in bookings, particularly for the peak months of July, August, and September.
In addition to softer demand, Ryanair is contending with rising labor costs and has attributed some challenges to delays in aircraft deliveries from Boeing, a long-standing issue for O’Leary. Although he defended the company after a mid-flight incident involving a 737 Max 9 earlier this year, he has consistently urged Boeing to improve its operations.
O’Leary remarked that customers appear to be feeling the strain more than they did during the early recovery phase from the COVID-19 pandemic, with rising inflation and stagnating economic growth affecting consumers in the European Union. He suggested that a reduction in operational capacity for summer 2025, compared to the original Boeing delivery schedule, may turn out to be beneficial if consumer pressure continues in the upcoming year or 18 months.