Ryanair is facing disappointment in its business performance, leading to a 17% drop in its stock price following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which remains similar to last year’s figures, but its profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair—up 10% to 55 million—this growth is primarily achieved through reduced fares and heightened efforts to attract bookings.
During the earnings call, O’Leary highlighted the challenges faced by the airline, including disappointing close-in bookings and the ongoing need to stimulate demand. He pointed out that increased labor costs and Boeing’s delivery delays are additional obstacles. Despite standing by Boeing after a mid-flight incident with a 737 Max 9, O’Leary has consistently urged the manufacturer to improve its performance.
Furthermore, he indicated that customers seem to be experiencing greater financial pressure as inflation and stagnant economic growth impact their spending habits within the European Union. As a result, Ryanair expects to operate with lower capacity than initially planned for summer 2025, forgoing any growth in capacity for the following two years. O’Leary remarked that this approach might be beneficial if consumer pressure persists over the next year or 18 months.