Ryanair is expressing disappointment with its recent business performance, which has also left investors dissatisfied. The Irish budget airline’s stock has fallen 17% following a quarterly earnings report that came in below expectations. The company reported revenues of €3.6 billion ($4 billion), which remained unchanged from the previous year, but profits plummeted to €336 million, nearly halving compared to last year. CEO Michael O’Leary indicated that while more people are flying with Ryanair, attracting these customers has required significant effort.
He noted that traffic has grown by 10%, reaching 55 million passengers, but emphasized the necessity of adjusting prices to stimulate demand. O’Leary mentioned that close-in fares and booking performances were disappointing, particularly leading up to the peak months of July, August, and September.
The airline is also contending with softer demand and rising labor costs, along with ongoing issues related to Boeing’s delivery delays, a persistent concern for O’Leary. Despite facing challenges—including an incident earlier this year involving a 737 Max 9—he has maintained pressure on Boeing to improve its operations.
O’Leary acknowledged that consumers seem to be struggling more compared to the earlier stages of the economic recovery from COVID-19. Reports suggest that inflation and stagnating economic growth within the European Union are affecting spending habits. Consequently, he suggested that having a reduced number of planes might benefit Ryanair in the current climate.
“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,” O’Leary stated. “And if the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be.”