Ryanair has expressed disappointment over its recent business performance, which has led to discontent among investors. The Irish budget airline’s stock has plummeted by 17% following a quarterly earnings report that was weaker than anticipated. The company’s revenue remained stable at €3.6 billion ($4 billion), matching last year’s figures, but profits nearly halved to €336 million.
CEO Michael O’Leary acknowledged that while more passengers are flying with Ryanair — up 10% to 55 million — the airline is encountering challenges in maintaining fare levels. He noted during the earnings call that there has been a need to stimulate fares and bookings repeatedly, with close-in bookings falling short of expectations, particularly as the peak months of July, August, and September approach.
In addition to reduced demand, Ryanair is grappling with rising labor costs and has attributed some of its struggles to delays in Boeing aircraft deliveries, which O’Leary has criticized for years. While he has defended the company after a mid-flight incident involving a 737 Max 9 earlier this year, he has consistently urged Boeing to improve its operations.
O’Leary informed investors that customers seem to be facing more difficulties compared to the early recovery period after COVID-19, as ongoing inflation and sluggish economic growth begin to impact consumers in the European Union. In light of this, he suggested that having fewer aircraft could potentially benefit Ryanair in the coming times.
“We will have less capacity for summer 2025 than originally planned with our Boeing deliveries, leading into two years of essentially no capacity growth,” O’Leary stated. “If consumers are under pressure for the next year or 18 months, that might not be the worst scenario for us.”