Ryanair may have to scale back summer flights due to further Boeing delays By Reuters

© Reuters. General view of the Ryanair logo at its headquarters in Dublin, Ireland, September 16, 2021. REUTERS/Clodagh Kilcoyne/File Photo

Joanna Plucinska

DUBLIN (Reuters) – Ryanair will take delivery of far fewer Boeing (NYSE:) aircraft by the end of June than previously expected, Chief Executive Officer Michael O’Leary said on Friday. year.

The Dublin-based airline was the first to warn of disruption in Europe as the crisis deepens at Boeing, which has been mired in regulatory audits and banned from increasing 737 MAX production after a mid-air panel explosion on January 5. New Alaska Airlines MAX 9.

Ryanair was scheduled to take delivery of 57 Boeing MAX 8200 aircraft by the end of April, but a week ago Boeing told the airline it would take delivery of about 50 aircraft by the end of June, O’Leary said. That may now change.

“We don’t really know how many aircraft we’re going to get from Boeing,” O’Leary said at a press briefing. “We’re confident we’ll get 30 to 40 points. We’re reasonably confident we’ll get 40 to 45 points. But now we’re a lot less confident we’ll get 45 to 50 points.”

Boeing confirmed in a statement to Reuters that it had notified some airlines that deliveries could be delayed as it ensures the aircraft meet all regulatory standards before being delivered to customers.

Boeing said: “We deeply regret the impact this incident has had on our valued customer, Ryanair.” “We are committed to addressing our customers’ concerns and taking action on a comprehensive plan to strengthen the quality and delivery performance of the 737.”

Delivery delays could force Ryanair to remove some flights from its summer schedule and reduce capacity for what is expected to be a record-breaking summer of travel, O’Leary said.

“If we only get 40, we’ll have to announce some reductions in schedule by the end of March,” he said.

This means Ryanair is likely to carry just 205 million passengers in the financial year starting in April, compared to the 205 million previously forecast.

Additional capacity constraints could make the airline, known for its low ticket prices to summer hotspots such as Malaga and Sicily, less competitive with low-cost rivals such as easyJet (LON:).

Ryanair’s shares have risen by a quarter in the past two years, making it Europe’s top airline as the industry benefits from a travel boom following lockdowns caused by the COVID-19 pandemic.

‘Broken Promise’

O’Leary did not mince words in criticizing Boeing for its communications with Ryanair following the door plug issue in January.

“There’s a shitshow going on in Seattle,” O’Leary said, calling for a change in management. “They keep giving us optimistic, broken promises, and then a week or two later… it turns out the reality is worse.”

His comments come just days after the first management shakeup at Boeing in the wake of the MAX 9 accident. Ed Clark, Boeing’s 18-year veteran and head of the 737 program, has been replaced by Katie Ringgold, who led 737 delivery operations.

O’Leary said that if United Airlines or another airline stops ordering Boeing’s MAX 737 10, Ryanair would be willing to take over the plane.

“If the price is right, we’ll be happy to take it. We could see some growth in 2027 or 2028.”

O’Leary said some of the costs of the delays will be passed on to customers. Prices are expected to rise by around 5-10% this summer, and average rates could rise by around 10-15 euros over the next five years.

The airline was discussing possible compensation with Boeing to mitigate its losses.

“There’s no excuse. Boeing will argue there’s no excuse. We think we’ll get some decent compensation from Boeing,” O’Leary said.

“Our focus at this point is securing the bloody plane.”