Ryanair has expressed disappointment in its business performance, which has also affected investor confidence. The Irish budget airline’s stock has fallen by 17% following the release of a quarterly earnings report that was weaker than anticipated. The company’s revenue reached €3.6 billion ($4 billion), remaining stable compared to the previous year, but profits significantly dropped to €336 million.
CEO Michael O’Leary noted that while the airline is successfully increasing passenger numbers—up 10% to 55 million—doing so has required significant effort and fare adjustments. He indicated concerns about disappointing bookings as the peak travel months of July, August, and September approach.
In addition to reduced demand, Ryanair is also facing escalating labor costs and is affected by delays in aircraft deliveries from Boeing, an ongoing frustration for O’Leary. Despite defending the company after a mid-flight incident involving a 737 Max in recent months, he has persistently urged Boeing to resolve its issues.
O’Leary pointed out that customers may be feeling the impact of inflation and sluggish economic growth within the European Union, which could lead to a reduction in flight capacity. He revealed that Ryanair plans to have less capacity in the summer of 2025 than initially scheduled due to delayed Boeing deliveries, and anticipates a period of no capacity growth thereafter. O’Leary suggested that this strategy might be beneficial if consumers face financial pressures in the coming year or 18 months.