Ryanair is expressing dissatisfaction with its recent business performance, which has, in turn, left investors unhappy. The Irish low-cost airline’s stock has fallen by 17% following the release of a disappointing quarterly earnings report. The company’s revenue remained stable at €3.6 billion ($4 billion) compared to the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary stated that while they are managing to attract more passengers, it requires significant effort to achieve this.
O’Leary noted that passenger traffic increased by 10% to 55 million, but emphasized that this growth is contingent on pricing strategies. He expressed concerns about lower-than-expected close-in fares and bookings, particularly as the peak months of July, August, and September approached.
Additionally, Ryanair is facing challenges from increased labor costs and ongoing delivery delays from Boeing, an issue O’Leary has been vocal about for many years. Despite a recent incident involving a 737 Max 9, he continues to urge Boeing to improve its performance.
O’Leary also indicated that consumers are increasingly feeling the financial strain as years of inflation and slowing economic growth take their toll in the European Union. As a result, he suggested that reducing the number of aircraft in operation could potentially benefit Ryanair.
He stated, “We will have less capacity into summer 2025 than we originally scheduled with our Boeing delivery, and then we’re looking at two years with essentially no capacity growth at all. If consumers face pressure over the next year or 18 months, that might not be the worst position for us.”