Ryanair is expressing dissatisfaction with its recent business performance, leading to disappointment among investors. The Irish budget airline has seen its stock price fall by 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue stood at €3.6 billion ($4 billion), unchanged from the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while the number of passengers flying with Ryanair has increased by 10% to 55 million, obtaining this growth requires significant effort.
O’Leary pointed out that the airline is under pressure to stimulate fares and bookings, which have proven disappointing, particularly as the peak season of July, August, and September approaches. In addition to weaker demand, Ryanair is facing heightened labor costs and has been affected by delivery delays from Boeing, an ongoing issue that O’Leary has been vocal about.
He further indicated that Ryanair’s customers appear to be feeling the impact of years of inflation and slowing economic growth within the European Union, which might lead to adjusted capacity plans. O’Leary mentioned that the airline would operate with less capacity in summer 2025 than initially anticipated due to Boeing’s delivery schedule, suggesting that this reduction in capacity could be strategically beneficial if consumer pressure continues for the next year or more.