Dublin, Ireland – The CEO of Ryanair has announced that travelers can expect higher airfares this summer as the airline grapples with delays in receiving new Boeing planes. Michael O’Leary expressed concerns over the late delivery of the aircraft, which will limit passenger capacity and potentially result in ticket prices increasing by up to 10%.
Ryanair is anticipating the arrival of 57 Boeing 737 Max 8200 aircraft by March, but the company now predicts that only 40-45 planes will be ready for the summer season. O’Leary mentioned that while the airline hopes to receive some compensation for the delays, their primary focus is on ensuring the delivery of the planes to meet demand.
The aviation industry has been closely monitoring Boeing’s operations following an incident in January involving a malfunction on one of its jets during a flight. Despite no serious injuries, the incident prompted major scrutiny from regulators, including the Federal Aviation Administration. O’Leary highlighted the increased oversight on Boeing due to concerns about quality control and production delays.
In light of the challenges faced by airlines worldwide in acquiring new aircraft, Ryanair is bracing for a “higher fare environment across Europe” during the upcoming season. Concerns over Pratt & Whitney engines have also led to the grounding of Airbus planes used by other carriers, adding to the industry-wide constraints on capacity.
Lucy Coutts, an investment director, noted that Boeing’s delays will result in 9,000 fewer available seats this summer, impacting airlines like Ryanair. The low-cost carrier is set to raise fares by 10%, which is slightly higher than the industry average of 3-7%, reflecting the airline’s need to offset costs from the delivery delays.
As Ryanair adjusts its passenger forecast for the year, with potential revisions due to the constrained aircraft availability, O’Leary emphasized the importance of having a comprehensive plan in place to address the challenges posed by the delayed deliveries. Boeing, in response, expressed regret over the impact of the delays on Ryanair and assured they were working to strengthen the quality and delivery performance of the 737 aircraft.
The ongoing struggles faced by Boeing and its impact on airlines like Ryanair underscore the broader challenges confronting the aviation industry as it navigates through disruptions in production and delivery schedules. The summer season is expected to be particularly challenging for both airlines and passengers as they navigate the evolving landscape of air travel amidst these unforeseen obstacles.