Ryanair's Traffic Forecast Trimmed Again: Boeing Delays Bite

Ryanair, Europe's largest low-cost airline, has once again trimmed its traffic forecast for the coming year, citing ongoing delivery delays from Boeing. The airline, which had previously expected to carry 215 million passengers in 2025, has now reduced its estimate to 210 million. This reduction is primarily due to Boeing's inability to deliver the expected number of 737 MAX aircraft on time.

Boeing's production and delivery schedule for the 737 MAX aircraft has been facing significant delays, which have impacted Ryanair's operational planning and passenger growth forecasts. As of now, Boeing is expected to deliver only 40 of the 57 planned B737-MAX8200 aircraft to Ryanair by the end of June 2024, instead of the originally planned 50 aircraft. This reduction in deliveries has forced Ryanair to reduce its passenger traffic estimates and cut approximately 10 aircraft lines of flying for the peak summer months of July, August, and September.

Ryanair's CEO, Michael O'Leary, has expressed frustration with Boeing's modest compensation and the ongoing issues with European air traffic control, which have contributed to operational challenges for the airline. The delivery of 11 Boeing 737 Max planes has been delayed, with only two expected on time, impacting Ryanair's operational planning and passenger growth forecasts.

The current Boeing delivery delays are not an isolated incident, as the airline has faced previous disruptions in the past. In 2023, Ryanair and other airlines experienced delivery delays due to production issues at Boeing, including supply chain disruptions and technical challenges. These delays have resulted in reduced capacity and higher air fares for consumers in Europe during the summer of 2024.

Ryanair has taken steps to mitigate the impact of these delays by restructuring its flight schedules and reallocating existing aircraft to higher-demand routes. However, the reduced capacity has led to higher ticket prices, as fewer available seats typically result in increased fares. Despite these challenges, Ryanair remains optimistic about its long-term growth prospects and is committed to achieving its goal of carrying 225 million passengers annually by 2030, supported by continued fleet expansion and a focus on cost efficiency.

In conclusion, Boeing's delivery delays have had a significant impact on Ryanair's growth prospects, with the airline having to reduce its passenger growth forecast for next year. The reduced capacity has led to higher ticket prices, as fewer available seats typically result in increased fares. Despite these challenges, Ryanair remains committed to its long-term growth goals and is working with Boeing to maximize the number of new B737 aircraft they receive by the end of June, which they can confidently release for sale to customers during the S24 peak.