Ryanair Faces Summer Turbulence as Boeing Delivery Delays Threaten Schedule

Ryanair Holdings Plc RYAAY RYAOF is facing the prospect of receiving fewer Boeing Co BA aircraft by the end of June than initially anticipated, according to CEO Michael O’Leary. 

Ryanair runs one of the biggest fleets of Boeing aircraft, with around 230 currently in service, and has 300 of the company’s 737 Max 10 models on order.

In Early January, Alaskan Airlines ALK 737 Max 9 jet was forced to make an emergency landing after a door panel blew out in mid-flight.

Ryanair is set to be the first in Europe to experience the repercussions of Boeing’s crisis and is expected to have 57 Boeing MAX 8200 planes by the end of April. 

However, a recent communication from Boeing indicated a reduced delivery of around 50 aircraft by the end of June, Reuters noted, prompting uncertainty and potential disruptions to Ryanair’s summer schedule.

Boeing acknowledged the situation, expressing regret for the impact on Ryanair and attributing delays to ensuring regulatory standards.

In response to the potential shortage, O’Leary revealed that Ryanair might need to make minor schedule cuts, affecting capacity during the peak summer travel season.

The delivery delays could result in Ryanair carrying only 200 million passengers for the financial year starting in April, down from the previous forecast of 205 million. 

O’Leary highlighted the challenges, stating that further disruptions could affect the airline’s competitiveness against rivals like easyJet Plc EJTTF ESYJY

In light of the delays, Ryanair is reportedly discussing compensation with Boeing. 

As per the Financial Times report, O’Leary expressed frustration with the situation, labeling it a “shitshow” in Seattle, and emphasized the focus on obtaining the ordered airplanes. 

He also hinted at passing some of the cost to customers, with potential price increases of 5%-10% this summer and average fares rising by 10-15 euros over the next five years.

While Ryanair grapples with Boeing’s production issues, other airlines like Lufthansa and TUI are taking mitigating steps to address potential delays. 

Analysts anticipate rising ticket prices across the sector due to general supply chain delays. 

O’Leary remained open to additional Boeing orders if other carriers dropped their orders, signaling a potential opportunity for Ryanair’s growth in 2027 or 2028.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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