Ryanair has expressed disappointment in its recent business performance, leading to investor dissatisfaction as well. The Irish low-cost airline’s shares have plummeted 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenues of €3.6 billion ($4 billion), roughly the same as the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with the airline, attracting them requires significant effort.
During the company’s earnings call, O’Leary highlighted that passenger traffic grew by 10%, reaching 55 million travelers, but emphasized that this growth depends heavily on pricing strategies. He pointed out that recent performance for close-in bookings has been disappointing, especially leading into the peak months of July, August, and September.
In addition to lower demand, Ryanair is facing increased labor costs and has attributed some of its challenges to ongoing delivery delays from Boeing, a recurring issue for O’Leary. Despite facing turbulence, he has continued to support the airline, even after experiencing an incident with a 737 Max 9 earlier this year, while urging Boeing to improve its operations.
O’Leary also mentioned that Ryanair’s customers seem to be facing greater financial pressure compared to earlier in the post-COVID-19 recovery, as inflation and slowing economic growth impact spending in the European Union. He suggested that a reduced capacity may ultimately benefit Ryanair, stating that the airline anticipates having less capacity in summer 2025 than initially projected due to Boeing’s delivery issues, and that a lack of capacity growth could be advantageous if consumer pressures continue for the next year and a half.