Ryanair is experiencing challenges in its business performance, leading to a 17% drop in its stock prices following a disappointing quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), remaining relatively unchanged from the previous year, but profits fell sharply to €336 million. CEO Michael O’Leary indicated that while more passengers are flying with Ryanair, achieving this growth requires significant effort.
During the earnings call, O’Leary highlighted a 10% increase in passenger traffic, totaling 55 million, but noted that this growth is heavily influenced by pricing strategies. He expressed concerns about decreased demand as bookings closer to peak travel months have underperformed expectations.
Additionally, the airline is grappling with rising labor costs and has cited Boeing’s delivery delays as another factor affecting performance. O’Leary has consistently called on Boeing to resolve these issues, which have been persistent challenges.
Furthermore, O’Leary pointed out that Ryanair’s customers seem to be facing increased pressures from prolonged inflation and stagnant economic growth in the European Union. As a result, he indicated that operating a smaller number of aircraft could eventually benefit the airline.
He announced that for the summer of 2025, Ryanair will have less capacity than initially planned due to Boeing’s delivery delays and anticipates two years of no growth in capacity. O’Leary concluded that under pressure, consumers might lead to a more advantageous position for the airline in the coming months.