Boeing Delivery Delays: A 'Pain in the Backside' for Ryanair

Ryanair, Europe's largest airline, has been grappling with Boeing's delivery delays, which have significantly impacted its fleet expansion plans and route network growth. The airline's CEO, Michael O'Leary, has expressed his frustration with the situation, describing it as a "pain in the backside." This article explores the implications of Boeing's delivery delays on Ryanair's operations, financial performance, and competitive position in the European airline market.

Boeing's delivery delays have forced Ryanair to reduce its peak summer schedule by 10 aircraft lines, leading to minor schedule changes and reduced frequencies on existing routes. The airline had initially planned to receive 57 B737-MAX8200 aircraft by the end of June 2024 but now expects only 40 due to production issues. This reduction in fleet size has resulted in a reduction of approximately 10 aircraft lines of flying during the peak summer months (July, August, and September).


The delivery delays have also led Ryanair to lower its FY March 2025 traffic target to just under 200m passengers, down from an original target of 205m. Consequently, Ryanair's full-year traffic growth is now projected to be between 198m to 200m in FY25, compared to 184m in FY24. The delays have also forced Ryanair to lower its 2026 financial year passenger target by 5 million, to 210 million.


Boeing's delivery delays have significant financial implications for Ryanair. The airline's revenue and profitability are directly affected by its ability to expand its fleet and increase passenger capacity. The reduced fleet size and lower traffic growth projections could lead to lower revenue and profitability for Ryanair.

The delivery delays also impact Ryanair's competitive position in the European airline market. With up to 20% of Airbus A320 fleets grounded, Ryanair's reduced capacity may lead to higher fares due to constrained supply. However, Ryanair's CEO Michael O'Leary expects this to result in more constrained capacity and slightly higher air fares for consumers in Europe in Summer 2024. This could potentially benefit Ryanair by making its services relatively more attractive to price-sensitive customers.

In conclusion, Boeing's delivery delays have presented significant challenges for Ryanair, impacting its fleet expansion plans, route network growth, and financial performance. The airline has had to adjust its schedules and lower its traffic growth projections due to the reduced fleet size. While the delivery delays may have some short-term negative impacts, Ryanair remains optimistic about its long-term prospects and is working with Boeing to mitigate the effects of the delays. Investors should monitor Ryanair's progress and the ongoing Boeing delivery issues to assess the potential impacts on the airline's financial performance and market position.