Ryanair has expressed disappointment in its recent business performance, leading to a 17% drop in its stock prices following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which was flat compared to the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary noted that while passenger traffic increased by 10% to 55 million, the airline is struggling to achieve these levels without significant fare stimulation.
O’Leary highlighted that demand, particularly for close-in bookings, has been weaker than anticipated, especially as the peak travel months of July, August, and September approach. Additionally, Ryanair faces challenges from rising labor costs and ongoing delays in aircraft deliveries from Boeing, which have been a persistent issue for the airline.
He also pointed out that Ryanair’s customers are showing signs of financial strain, reflecting broader economic pressures in the European Union as inflation and sluggish growth take their toll. In light of these circumstances, O’Leary indicated that operating fewer aircraft might ultimately benefit Ryanair.
“We will have less capacity in the summer of 2025 than originally planned due to Boeing’s delivery issues, which will lead to two years of minimal capacity growth,” he explained. “If consumers remain under pressure for the next year to 18 months, this could place Ryanair in a favorable position.”