Ryanair is expressing disappointment over its recent business performance, which has also led to dissatisfaction among investors. The Irish budget airline’s stock has dropped by 17% following the release of a quarterly earnings report that was weaker than anticipated. The company’s revenue remained at €3.6 billion ($4 billion), consistent with last year’s figures. However, profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, attracting these customers has required significant effort.
O’Leary highlighted that traffic growth was robust, with a 10% increase to 55 million passengers, but this growth is tightly linked to pricing strategies. He mentioned that the airline has been compelled to continually boost fares and bookings, with disappointing figures for last-minute bookings as they approached the peak travel months of July, August, and September.
In addition to weaker demand, Ryanair is facing rising labor expenses and has criticized Boeing for its ongoing delivery delays, a recurring issue for O’Leary. Despite past challenges, he has defended Boeing following an incident earlier this year involving a 737 Max 9, but he has long urged the manufacturer to improve its performance.
O’Leary also informed investors that customers appear to be facing greater challenges than in the early phases of the economic recovery post-COVID-19. Reports indicate that prolonged inflation and slowing economic growth are taking a toll on consumers in the European Union. Consequently, he suggested that operating fewer aircraft might be beneficial for Ryanair.
He stated, “We will have less capacity into summer 2025 than we are originally scheduled to have with our Boeing delivery, and then, we’re into two years of essentially no capacity growth at all. And if the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be.”