Ryanair is expressing disappointment in its recent business performance, which has also led to investor dissatisfaction. The Irish low-cost airline’s stock has plummeted 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue stood at €3.6 billion ($4 billion), virtually unchanged from the previous year. However, profits nearly cut in half to €336 million. CEO Michael O’Leary noted that while more passengers are flying with the airline, attracting them requires significant effort.
O’Leary reported a 10% increase in traffic, bringing passenger numbers to 55 million, but emphasized that this growth is coupled with pricing pressures. He mentioned the need to consistently incentivize fares and bookings, particularly noting disappointing performance in close-in bookings leading into the peak months of July, August, and September.
In addition to lower demand, Ryanair is navigating higher labor costs and has partially attributed its challenges to delays in Boeing aircraft deliveries, which have long frustrated O’Leary. While he has defended Boeing following a mid-flight incident with a 737 Max 9 earlier this year, he has urged the manufacturer to improve their delivery timelines.
O’Leary also observed that Ryanair’s customers are facing increased economic pressures due to persistent inflation and slowing growth within the European Union. Consequently, he suggested that a reduction in flight capacity might be advantageous for the airline.
He announced that the airline would have less capacity for summer 2025 compared to its original Boeing delivery schedule, with two years of minimal capacity growth expected. O’Leary concluded that if consumer pressures continue over the next 12 to 18 months, this might ultimately position Ryanair better in the market.