Home Stock Market Ryanair reduces passenger forecast due to Boeing MAX delays affecting summer schedules.

Ryanair reduces passenger forecast due to Boeing MAX delays affecting summer schedules.

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Ryanair reduces passenger forecast due to Boeing MAX delays affecting summer schedules.

Ryanair Adjusts Passenger Forecast Due to Boeing MAX Delays

Challenges Faced by Ryanair

Ryanair has revised its passenger forecast for the upcoming financial year, expecting to carry between 198 million to 200 million passengers instead of the previously projected 205 million. This adjustment comes as the airline announced cuts to its summer schedule, attributing the changes to delays in Boeing’s delivery of aircraft.

Impact on Operations

The airline was scheduled to receive 57 Boeing MAX 8200 planes by the end of April. However, due to ongoing issues at Boeing, only 40 jets will be delivered by the end of June. This delay has forced Ryanair to reduce approximately 10 aircraft lines from its fleet during the peak summer months of July, August, and September.

Market Effects

Ryanair’s CEO, Michael O’Leary, expressed concerns about the impact of these delays on capacity and airfares in Europe for the upcoming summer season. With Airbus also facing challenges, there is expected to be a strain on capacity leading to potential fare increases for consumers.

Collaboration with Boeing

Ryanair plans to work closely with Boeing to manage deliveries between July and September, aiming to stimulate traffic growth during September and October. However, this may only be achievable with reduced fares during the shoulder months.

Operational Adjustments

The airline has already implemented schedule cuts at select high-cost airports, offering affected passengers alternative flight options or full refunds. This proactive approach aims to mitigate disruptions and provide passengers with suitable alternatives.

Despite these challenges, Ryanair remains optimistic about resolving the production delays and quality control issues with Boeing. The airline continues to support Boeing’s efforts in overcoming these temporary setbacks, emphasizing confidence in the company’s leadership team.