Ryanair has expressed disappointment in its recent business performance, which has also affected investor sentiment. The Irish budget airline’s stock has dropped by 17% following a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), remaining flat compared to the previous year, while profits nearly halved to €336 million.
CEO Michael O’Leary noted that although more passengers are flying with Ryanair—up 10% to 55 million—this growth comes at a cost. He highlighted the need to stimulate fares and bookings, mentioning that close-in fares and bookings have been disappointing, particularly leading into the peak travel months of July, August, and September.
In addition to reduced demand, Ryanair is facing higher labor costs and has also pointed fingers at Boeing for delivery delays, which have been a long-standing issue. Despite earlier challenges, O’Leary has consistently urged Boeing to improve its performance.
Moreover, he indicated that customers appear to be experiencing more financial strain than at the start of the economic recovery from the COVID-19 pandemic. With years of inflation and sluggish economic growth taking their toll in the European Union, O’Leary suggested that operating fewer aircraft may ultimately benefit the airline.
He stated, “We will have less capacity into summer 2025 than we are originally scheduled to have with our Boeing deliveries, and we’re looking at two years of essentially no capacity growth at all. If consumers face pressure over the next year or 18 months, that may not be the worst situation for us.”