Ryanair expansion plans pushed back by Boeing MAX grounding

  • Ryanair expansion plans pushed back by Boeing MAX grounding

Ryanair expansion plans pushed back by Boeing MAX grounding

The budget carrier said its target to carry 200 million passengers a year would have to wait for a year or two until 2025 or 2026.

Ryanair made the offer for an undisclosed number of 737 MAX 10 jets, a larger model than the MAX 200 model the Irish airline now has on order, O'Leary said on a conference call following the release of financial results for the last three months of 2019. According to Reuters, the groups chief Michael O'Leary today revealed that the Ryanair Group is in discussions with Boeing over an undisclosed number of aircraft. "We understand that, but we have the offering and we expect to be at the head of the queue".

RYANAIR Holdings plc posted a profit for its winter low season but said an earnings boost from Boeing Co's grounded 737 Max jetliner probably won't kick in for another year.

O'Leary said pricing of the Max will need to change to reflect the damage that two crashes did to its reputation.

O'Leary made the comments on a call with analysts as Ryanair released financial results and said the grounding of its Max 200s, which have around 200 seats, will delay its growth targets.

It comes as Boeing is battling to ensure its 737 Max planes are able to take to the skies again.

In an update for the three months to the end of December 2019, the airline said it swung to a net profit after tax of €88m from a loss of €66m in the same period the year before, with revenue up 21% to €1.58bn and average fares up 9%.

"It is now likely that our first Max aircraft will not deliver until September or October 2020", Ryanair said in a statement to the Stock Exchange on Monday.

Ryanair is one of Boeing's larger customers, and it looks as though the Irish low-priced carrier wants to leverage this position for future aircraft orders. A total of 152 million passengers boarded their 340 Boeing 737s past year.