Ryanair is expressing disappointment over its recent business performance, which has also led to investor dissatisfaction. The budget airline’s stock has plummeted by 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), nearly identical to last year’s figures, while profits experienced a significant decline, nearly halving to €336 million.
CEO Michael O’Leary noted that while more people are flying with Ryanair—traffic grew by 10% to 55 million passengers—this growth comes at a cost. “We are having to work very hard to stimulate fares and bookings, and performance has been disappointing, particularly in the lead-up to peak months like July, August, and September,” he stated during the earnings call.
Moreover, Ryanair is facing increased labor costs and has criticized Boeing for its delivery delays, a recurring issue for the airline. Despite his criticisms, O’Leary has maintained support for the company even after a mid-flight incident involving a 737 Max 9 aircraft.
O’Leary also mentioned that Ryanair’s customers seem to be feeling the effects of inflation and sluggish economic growth in the European Union more acutely than earlier in the post-COVID recovery period. This may lead to a reduction in flight capacity for the coming summer seasons. “We will have less capacity in summer 2025 than initially planned due to Boeing’s delivery schedule, and we anticipate two years of virtually no growth in capacity,” he remarked. “Given the economic pressure on consumers over the next 18 months, this might not be the worst outcome for us.”