Ryanair has expressed disappointment in its recent business performance, which has also affected investor sentiment. The airline’s stock has dropped by 17% following the release of a quarterly earnings report that fell short of expectations. While revenue remained stable at €3.6 billion ($4 billion) compared to last year, profits nearly halved to €336 million. CEO Michael O’Leary acknowledged that while more passengers are flying with the airline, attracting them has required significant effort.
Despite strong traffic growth of 10%, resulting in 55 million passengers, O’Leary noted that this growth comes at a cost, as they must continuously stimulate fares and bookings. He highlighted disappointing performance in close-in bookings as a concern, especially as they approach the peak travel months of July, August, and September.
In addition to lower demand, Ryanair is contending with increased labor costs and ongoing delivery delays from Boeing, an issue that has long frustrated O’Leary. He has defended the company after a mid-flight incident involving a 737 Max 9 but has also urged Boeing to improve its operations.
O’Leary mentioned that Ryanair’s customers are facing more challenges than earlier in the post-COVID economic recovery. Reports suggest that years of inflation and sluggish economic growth are impacting consumers in the European Union. Consequently, he indicated that reducing the number of jets operated by Ryanair could potentially be beneficial for the airline.
He stated that the company would have less capacity for the summer of 2025 than initially planned due to Boeing’s delivery issues, leading to two years of no capacity growth. O’Leary suggested that under current consumer pressures, this might not necessarily be a negative position for the airline.