Ryanair is expressing disappointment with its business performance, a sentiment echoed by its investors as the airline’s stock plummets 17% following a less-than-expected quarterly earnings report. The Irish budget airline reported revenues of €3.6 billion ($4 billion), roughly equivalent to last year’s figures, but profits were nearly cut in half to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, it requires considerable effort to achieve this.
O’Leary highlighted a strong traffic growth of 10%, reaching 55 million passengers, but emphasized that this growth is primarily driven by pricing strategies. He admitted that close-in booking performance has been disappointing, especially as the peak months of July, August, and September approach.
The airline faces additional challenges, including rising labor costs and ongoing issues with Boeing’s delivery delays, which have long been a source of frustration for O’Leary. Despite recent incidents involving aircraft, he remains critical of Boeing, insisting that improvements are necessary.
Furthermore, O’Leary indicated that Ryanair’s customers may be feeling the impact of prolonged inflation and stagnant economic growth within the European Union. As a result, he noted that the airline plans to operate with reduced capacity into summer 2025, adjusting its Boeing delivery schedule. He suggested that this reduction in capacity might be advantageous if consumer demand continues to decline over the next year to 18 months.