Ryanair has expressed disappointment in its recent business performance, reflecting similar sentiments from investors. The Irish budget airline’s stock plummeted by 17% following a quarterly earnings report that fell short of expectations. The company’s revenue was reported at €3.6 billion ($4 billion), remaining unchanged from the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while the number of passengers has increased, significant efforts are required to maintain these numbers.
O’Leary pointed out that traffic growth stands at 10%, with 55 million passengers, but emphasized that the growth is price-dependent. He mentioned the need for Ryanair to continually lower fares and work hard on increasing bookings. He described the recent performance and close-in bookings as disappointing, particularly as the airline approaches the peak travel months of July, August, and September.
In addition to weak demand, Ryanair is facing higher labor costs and ongoing issues with Boeing’s delivery delays, a recurring frustration for O’Leary. Despite supporting the manufacturer after a mid-flight incident with a 737 Max 9 earlier this year, he has urged Boeing to improve its delays.
O’Leary also highlighted that customers appear to be feeling the effects of ongoing inflation and stagnant economic growth within the European Union, suggesting that reduced flight capacity might actually benefit Ryanair in the near future. “We will have less capacity into summer 2025 than originally scheduled with our Boeing delivery, and after that, we anticipate two years of essentially no capacity growth,” he stated. “If consumers face pressure for the next 12 to 18 months, this may position us favorably.”