Ryanair is expressing disappointment over its recent business performance, which has also led to investor dissatisfaction. The stock of the Irish low-cost airline has fallen by 17% following the release of a quarterly earnings report that missed expectations. The company reported revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, but profits dropped significantly to €336 million.
CEO Michael O’Leary noted that while more passengers are flying with Ryanair—up 10% to 55 million—the airline is having to offer competitive pricing to attract customers. He indicated that improving bookings and fares has been a challenge, particularly in the lead-up to the peak travel months of July, August, and September.
In addition to weaker demand, Ryanair is facing rising labor costs and attributed some of its issues to delays in aircraft deliveries from Boeing, which have been a longstanding concern for O’Leary. Despite previously supporting Boeing following a mid-flight incident with a 737 Max 9, he has urged the manufacturer to improve its delivery processes.
O’Leary also mentioned that consumers in the European Union appear to be feeling the impact of inflation and slowing economic growth more acutely than during the early recovery from the COVID-19 pandemic. He suggested that operating fewer aircraft in the summer of 2025 than planned might not be detrimental, considering that consumers may continue to experience financial pressure over the next year to 18 months.