Ryanair is expressing disappointment in its recent business performance, which has also left investors dissatisfied. The Irish budget airline’s stock has fallen by 17% following the release of a quarterly earnings report that was weaker than anticipated. The company’s revenue remained flat at €3.6 billion ($4 billion) compared to the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary stated that although more passengers are flying with Ryanair, it requires considerable effort to achieve this.
O’Leary noted that passenger traffic grew by 10% to 55 million but emphasized that this growth comes at a cost. He mentioned the need to constantly stimulate fare pricing and bookings, with disappointing results in close-in bookings leading into the peak months of July, August, and September.
In addition to weak demand, Ryanair faces rising labor costs and has expressed frustration with ongoing delays in Boeing’s aircraft deliveries. Although O’Leary has supported the company following a recent incident involving a 737 Max 9, he has long urged Boeing to improve its performance.
Furthermore, O’Leary indicated that Ryanair’s customers are experiencing increased financial strain, attributing this to years of inflation and stagnating economic growth in the European Union. He suggested that operating a smaller fleet may ultimately benefit Ryanair.
“We will have less capacity going into summer 2025 than originally planned due to our Boeing delivery schedule, leading to two years of essentially no capacity growth,” O’Leary stated. “If consumers face financial pressures over the next year or 18 months, this situation might not be detrimental for us.”