Ryanair’s recent performance has left both the airline and its investors dissatisfied, with the company’s stock plummeting 17% following a disappointing quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), roughly the same as last year’s figures, but profits nearly halved to €336 million. CEO Michael O’Leary indicated that while more passengers are flying with Ryanair, the airline must work harder to attract them.
O’Leary highlighted that traffic growth is strong, up 10% to 55 million passengers, but this growth is largely reliant on pricing strategies. The airline has faced challenges with close-in fares and bookings, which have fallen short of expectations as they approach the peak travel months of July, August, and September.
Ryanair is also contending with rising labor costs, compounded by delays in aircraft deliveries from Boeing—a recurring issue for O’Leary. He has expressed frustration over the planemaker’s performance, despite previously supporting the company after a mid-flight incident with a 737 Max 9 aircraft.
Additionally, O’Leary noted that economic pressures, particularly due to ongoing inflation and stagnant growth, have begun to affect European consumers. He mentioned that Ryanair may have to operate with fewer aircraft in the coming years, stating, “We will have less capacity into summer 2025 than we are originally scheduled to have with our Boeing delivery, and then, we’re into two years of essentially no capacity growth at all.” He suggested that this strategy may prove beneficial if consumer spending continues to decline in the near future.