Ryanair has expressed disappointment with its recent business performance, leading to a 17% drop in its stock value following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which is on par with last year’s figures, but profits saw a significant decline, nearly halving to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, the company is facing challenges in maintaining this growth.
O’Leary stated during the earnings call, “Traffic growth is strong, up 10% to 55 million passengers, but it’s only strong at a price.” He highlighted the need for the airline to continually stimulate fares and bookings, mentioning that recent close-in bookings have been disappointing, particularly as the company heads into peak travel months.
In addition to softer demand, Ryanair is contending with rising labor costs and ongoing issues with Boeing’s delivery delays, which have long frustrated O’Leary. Despite this, he remains supportive of Boeing following a recent incident with a 737 Max 9.
O’Leary mentioned that Ryanair customers are showing signs of additional economic pressure as inflation and slow growth rate impact consumers throughout the European Union. He noted that the airline will likely have reduced capacity in summer 2025 compared to its original Boeing delivery schedule, with two years of minimal capacity growth ahead. He suggested that being in this position might not be detrimental if consumer pressure continues over the next year or 18 months.