Ryanair has expressed disappointment over its recent business performance, which has also led to dissatisfaction among investors. The airline’s stock has plummeted by 17% following a quarterly earnings report that fell short of expectations. While revenue remained stable at €3.6 billion ($4 billion) compared to the previous year, profits saw a significant decline, nearly halving to €336 million.
CEO Michael O’Leary noted that although there is a strong increase in passengers—up 10% to 55 million—this growth comes at a cost, as the airline is compelled to continuously lower fares to attract bookings. He highlighted that bookings close to the peak months of July, August, and September have been significantly weaker than anticipated.
In addition to reduced demand, Ryanair is facing rising labor costs and pointed to ongoing delivery delays from Boeing as a contributing factor. Despite standing by Boeing after an incident involving a 737 Max 9 earlier this year, O’Leary has expressed frustration over the manufacturer’s performance for years.
Moreover, O’Leary indicated that Ryanair’s customers may be feeling the effects of ongoing inflation and slowing economic growth in the European Union. He mentioned that the airline plans to operate fewer aircraft than initially scheduled for the summer of 2025, with two years of no capacity growth anticipated. O’Leary suggested that if consumers remain under financial pressure in the coming year, this strategy may benefit Ryanair in the long run.