RYANAIR Holdings warned that it could be forced to pare back its schedule in the peak summer travel season amid fresh delivery delays of new jets from Boeing.
The Irish discount carrier may receive fewer than 40 737 Max jets before the end of June, chief executive officer Michael O’Leary said. As recently as last month, Ryanair remained “reasonably confident” Boeing would deliver 50 new jets by summer, after a near-disaster in early January forced the United States planemaker to slow output. The airline originally was due to take 57 Max jets between summer 2023 and 2024.
“Our growth has been constrained because at this point in time we do not really know how many aircraft we’re going to get from Boeing,” O’Leary said during a media briefing. “I think 40 looks like the most realistic number but that’s moved down from 50 in the last two weeks.”
Ryanair makes most of its money in the summer season and cuts to its schedule mean lower revenue. O’Leary said the carrier had based its planning on the expectation it would receive 50 planes, and it will have to make some minor schedule cuts if it does not receive at least 40 planes by the end of March.
Boeing was plunged into chaos after a midair blowout on a 737 Max jet last month led to withering scrutiny of manufacturing quality at the US planemaker. US regulators have barred Boeing from increasing production of the Max and sent teams of inspectors to Boeing’s factories to review its quality controls and those of the supplier that makes most of the model’s fuselage.
Last week, Boeing announced it ousted Ed Clark, the head of the 737 Max programme. Katie Ringgold succeeds him, while production chief Elizabeth Lund has been made the senior vice president of quality at Boeing Commercial Airplanes.
O’Leary said he was not happy with the changes, saying Boeing should have one person responsible for producing 737s without quality flaws. BLOOMBERG
