Ryanair has expressed disappointment in its recent business performance, leading to investor dissatisfaction as well. The Irish low-cost airline’s stock has fallen by 17% following the release of a quarterly earnings report that failed to meet expectations. The company’s revenue remained steady at €3.6 billion ($4 billion), nearly in line with the previous year, but profits saw a significant decline of nearly 50%, dropping to €336 million. CEO Michael O’Leary noted that while passenger traffic has grown by 10% to 55 million, this growth has come at the cost of fare reductions and promotional efforts, which have not produced the desired results, especially as the peak summer months approach.
In addition to lower demand, Ryanair is facing rising labor costs and has criticized Boeing for delays in aircraft deliveries, an ongoing issue for O’Leary. Despite some earlier complications earlier this year involving a 737 Max 9, O’Leary has consistently urged Boeing to improve its performance.
Furthermore, O’Leary indicated that consumers in the European Union seem to be experiencing more financial strain compared to the early recovery period following COVID-19. This situation may lead to reduced jetliner capacity for Ryanair, which O’Leary believes could be beneficial. He stated that the airline will have less capacity for the summer of 2025 than originally planned due to Boeing’s delivery issues, and this could potentially align with the anticipated pressures on consumer spending over the next year or 18 months.