Ryanair warns of summer flight cuts
• CEO Michael O’Leary calls for management changes at Boeing as planemaker struggles with deepening crisis and delays deliveries
Ryanair will receive even fewer Boeing aircraft by the end of June than previously expected, CEO Michael O’Leary says, potentially causing the budget carrier to cut its schedule at the busiest time of the year.
The Dublin-based airline is the first in Europe to warn of disruption due a deepening crisis at Boeing, which has been mired in a regulatory audit and has been prohibited from ramping up 737 MAX production since the January 5 midair panel blowout of a new Alaska Airlines MAX 9.
Ryanair was due to receive 57 Boeing MAX 8200 planes by end-April, but just over a week ago Boeing told the airline it would receive about 50 aircraft by end-June, O’Leary said. That could now change. “We don’t really know how many aircraft we’re going to get from Boeing,” O’Leary told a media briefing.
“We’re pretty sure we’re going to get 30 to 40. We’re reasonably confident we’re between 40 and 45. And now we are far less confident we’re going to get between 45 and 50.”
Boeing confirmed that it had told some airlines that deliveries could be delayed as the company ensured planes met all regulatory standards.
“We deeply regret the impact this is having on our valued customer Ryanair,” Boeing said. “We’re working to address their concerns and taking action on a comprehensive plan to strengthen 737 quality and delivery performance.”
The delays meant Ryanair might have to remove some flights from its summer schedule, O’Leary said, cutting capacity for what is expected to be a record summer of travel.
“If we only get 40, by the end of March we will have to announce some minor schedule cuts,” he said.
That means Ryanair is likely to carry only 200-million passengers for the financial year beginning in April, versus the 205-million previously forecast.
Further capacity constraints could make the carrier less competitive against low-cost rivals like easyJet.
Ryanair’s stock has risen by a quarter over the past two years, making it the best-performing European airline as the industry rides a post-pandemic boom in travel.
BROKEN PROMISES
O’Leary was stinging in his criticism of US-based Boeing.
“There’s a shitshow going on in Seattle,” he said, repeating his calls for management changes. “They keep giving us optimistic, broken promises. And then a week or two weeks later ... it turns out that reality is worse.”
His comments come days after the first management shake-up at Boeing as a result of the MAX 9 incident. Boeing veteran and 737 programme head Ed Clark was replaced by Katie Ringgold, who led 737 delivery operations.
If United Airlines or other carriers dropped orders of Boeing’s MAX 737 10, Ryanair would gladly take the planes, O’Leary said. “I’d be delighted to take them as long as they get the right price. It would give us some growth in 2027 or 2028.”
O’Leary said he would pass some of the costs of delays on to customers.
Prices will rise by about 5%10% this summer, and average fares could increase by €10-€15 in the next five years.
TICKET PRICES
Analysts say ticket prices are set to keep rising across the sector. General supply chain delays were a continuing theme and were putting “upward pressure on fares and indeed aircraft values and lease rates”, said Davy analyst Stephen Furlong.
Some European airlines played down the likelihood of delivery delays. Lufthansa said its delivery times were not likely to change. Others have also taken mitigating steps.
“We have adjusted existing leases for this summer in case we are facing delays in Boeing 737-8 deliveries. So we are prepared and expecting updates from Boeing over the next weeks,” German travel and
I THINK WE [WILL] GET SOME COMPENSATION. AT THIS POINT OUR FOCUS IS GETTING THE BLOODY PLANES
tourism company TUI said.
Ryanair is discussing possible compensation with Boeing.
“It’s inexcusable. Boeing will try to claim that it’s excusable. I think we [will] get some modest compensation out of Boeing,” O’Leary said. “At this point our focus is getting the bloody planes.”
Michael O’Leary Ryanair CEO