Ryanair expresses disappointment with its recent business performance, which has led to investor dissatisfaction as well. The Irish budget airline’s stock has fallen by 17% following a quarterly earnings report that fell short of expectations. Revenue remained stagnant at €3.6 billion ($4 billion), while profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, significant efforts are required to achieve this.
O’Leary highlighted that while traffic increased by 10% to 55 million passengers, the demand is closely tied to pricing. The company has been forced to stimulate fares and bookings repeatedly, leading to disappointing close-in flight performance, particularly as peak travel months approached.
In addition to weaker demand, Ryanair is grappling with rising labor costs and has criticized Boeing for delivery delays, which have been a persistent concern for O’Leary. Despite backing the airline after a recent incident involving a 737 Max 9, he has urged Boeing to resolve its issues.
O’Leary indicated that customers appear to be facing more challenges compared to the early stages of the post-COVID-19 economic recovery. Reports suggest that enduring inflation and slow economic growth are beginning to impact consumers in the European Union. As a result, operating a reduced number of aircraft might benefit Ryanair.
“We will have less capacity for summer 2025 than initially planned due to Boeing’s delivery delays, followed by two years of essentially no capacity growth,” O’Leary stated. He suggested that if consumers experience financial pressure over the next year to 18 months, this situation might actually be advantageous for the airline.