Ryanair has expressed disappointment with its business performance, leading to a 17% drop in its stock after releasing a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which is on par with last year’s figures, but profits plunged nearly 50% to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair—up 10% to 55 million—the airline is facing challenges in maintaining fare levels and bookings, particularly as it approaches the peak travel months of July, August, and September.
The company is also grappling with increased labor costs and has pointed fingers at Boeing for delivery delays that have frustrated O’Leary for years. Despite standing by Boeing after an incident with a 737 Max 9 earlier this year, he has consistently urged the aircraft manufacturer to improve its performance.
O’Leary highlighted that Ryanair’s customers seem to be feeling the impact of prolonged inflation and sluggish economic growth in the European Union, suggesting that this could lead to a reduction in aircraft availability. He indicated that the airline would have less capacity available for summer 2025 than initially planned, with two years of essentially no capacity growth anticipated. In light of these economic pressures, he remarked that operating fewer aircraft might not be detrimental to Ryanair in the near term.