Ryanair blames Boeing as it revises down passenger forecasts

26th Feb 2024 10:58

(Sharecast News) - Ryanair revised down its passenger forecasts and warned of possible flight cancellations over the upcoming summer season on Monday, blaming Boeing over worsening delays in aircraft deliveries.

The airline's chief executive Michael O'Leary expressed frustration over Boeing's manufacturing setbacks, describing the situation as a "shit show" following a fuselage blowout incident on an Alaska Airlines flight in January.

Boeing's production issues on the 737 MAX had triggered restrictions from the US aviation regulator on expanding production of the aircraft - a key model for Ryanair's expanding fleet.

O'Leary said Ryanair was considering seeking compensation from Boeing for the disruptions.

Initially expecting to receive 57 Boeing 737 MAX-8 aircraft by June, Ryanair had consistently adjusted its estimates downward due to persistent manufacturing at Boeing.

O'Leary suggested that Ryanair could only receive between 40 and 45 aircraft, potentially falling short of the airline's operational needs for the summer schedule.

As a result, the airline - Europe's largest - could be forced to implement "minor schedule cuts" by the end of March to mitigate passenger disruption.

The delivery delays were expected to impact Ryanair's passenger numbers, with forecasts revised downwards for both the current and following financial years.

While demand for air travel remained robust, O'Leary warned of higher fares for customers due to the constrained capacity resulting from Boeing's production woes.

Despite the challenges, Ryanair was on track to achieve profitability targets for the financial year, albeit with potential implications for future growth plans.

Reporting by Josh White for Sharecast.com.