Ryanair is expressing dissatisfaction with its recent business performance, which has disappointed investors as well. The Irish budget airline’s stock has fallen by 17% following a quarterly earnings report that was weaker than anticipated. The company reported revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, but profits were significantly reduced, dropping to €336 million.
CEO Michael O’Leary acknowledged that while more passengers are using Ryanair flights, the airline is facing challenges in achieving this growth. He commented that traffic increased by 10% to 55 million passengers, but emphasized that this growth comes at a cost, requiring the airline to continuously stimulate fares and bookings. O’Leary noted that the demand for last-minute bookings has not met expectations, especially leading into the busy months of July, August, and September.
Additionally, Ryanair is grappling with rising labor costs and has pointed to delays in aircraft deliveries from Boeing as a contributing factor. Despite standing by Boeing after a recent incident involving a 737 Max 9, O’Leary has consistently urged the manufacturer to improve its operations.
He also indicated that Ryanair’s customers are facing more financial pressure compared to the earlier recovery period following the COVID-19 pandemic. Rising inflation and slowing economic growth in the European Union appear to be affecting consumer behavior. In light of these challenges, O’Leary suggested that operating fewer aircraft could ultimately benefit Ryanair in the coming years. He projected that the airline would have less capacity for the summer of 2025 than originally planned due to Boeing delivery schedules, and after that, a period of minimal capacity growth would follow.