Ryanair has expressed dissatisfaction with its recent business performance, reflecting concerns among its investors as well. Following the release of a disappointing quarterly earnings report, the Irish budget airline’s stock has fallen by 17%. Revenue remained stable at €3.6 billion ($4 billion), comparable to last year, but profits saw a significant decline, nearly halving to €336 million. CEO Michael O’Leary noted an increase in passenger traffic but acknowledged the pressure to attract customers at competitive prices.
During the company’s earnings call, O’Leary commented on the strong traffic growth, which surged by 10% to 55 million passengers. However, he emphasized that this growth is contingent on pricing strategies, stating that the airline has been required to continuously stimulate fares and bookings. He also highlighted disappointing performance in close-in bookings as they approached peak travel months.
Additionally, Ryanair has faced challenges from rising labor costs and has pointed fingers at Boeing due to ongoing delivery delays, a persistent issue for O’Leary. Despite standing by the company after a mid-flight incident involving a 737 Max 9 earlier this year, he has consistently called on Boeing to improve its operations.
O’Leary also remarked that economic pressures are increasingly affecting Ryanair’s customers, as inflation and sluggish economic growth in the European Union begin to take a toll. He mentioned that the airline would be operating with reduced capacity into summer 2025 compared to initial schedules with Boeing. He concluded that a lack of growth in capacity over the next couple of years might actually benefit the airline as consumers face economic pressures.