Ryanair CEO Warns of Higher Summer Fares Due to Delayed Boeing Plane Deliveries
Ryanair, one of Europe’s leading low-cost airlines, has issued a warning to holidaymakers that they may face higher fares this summer. The reason behind this potential increase is the delayed delivery of new Boeing planes, which will constrain capacity for passengers. Chief executive Michael O’Leary stated that Ryanair’s ticket prices could be up to 10% more expensive as a result of this setback.
The airline had expected a delivery of 57 Boeing 737 Max 8200’s by March, but now anticipates that only 40-45 planes will arrive in time for the summer season. This delay is a consequence of Boeing facing scrutiny since an incident in January when a piece of one of its jets blew out during a passenger flight. Although the incident did not result in serious injuries, it forced an emergency landing, leading to the US regulator, the Federal Aviation Administration, closely monitoring Boeing’s operations.
The concerns surrounding quality control for new Boeing aircraft have also contributed to a slowdown in production speed. O’Leary highlighted that other airlines are experiencing similar capacity constraints due to aircraft unavailability. For instance, carriers such as Wizz Air have grounded a number of Airbus planes due to problems with Pratt & Whitney engines. Consequently, O’Leary predicts a “higher fare environment across Europe” this summer.
Despite the potential fare increase, O’Leary assured customers that the rise would not be as steep as the 17% seen in 2023. Ryanair has managed to save costs through fuel hedging, which will help mitigate the impact on ticket prices. However, the CEO acknowledged that if capacity were growing, fares would be falling instead.
Ryanair had initially forecasted carrying 205 million passengers by the end of March 2025, compared to 183.5 million in the previous 12 months. However, with the delayed deliveries, O’Leary stated that the number may need to be revised downwards to around 200 million passengers.
When discussing the issues surrounding Boeing, O’Leary expressed his frustration with the confusion he perceives from the company. While he has consistently supported Boeing’s top management, he criticized their quality control standards. O’Leary disagreed with the decision to remove the boss of the 737 Max program, Ed Clark, arguing that having both a replacement for Clark and a new president for quality did not make sense. Instead, Ryanair desires one person in charge who can monitor the situation daily.
Boeing responded to Ryanair’s concerns by stating that they are working to address them and are implementing a comprehensive plan to strengthen 737 quality and delivery performance. They expressed regret over the impact this situation has had on their valued customer.
In conclusion, Ryanair’s warning of higher summer fares due to delayed Boeing plane deliveries has raised concerns among holidaymakers. The airline’s CEO, Michael O’Leary, explained that the delayed arrival of new planes will limit passenger capacity, resulting in potential fare increases of up to 10%. While Ryanair hopes to receive compensation for the delay, their primary focus is on getting the planes delivered. This issue is not unique to Ryanair, as other airlines are also facing capacity constraints due to aircraft unavailability. The ongoing scrutiny of Boeing’s operations and concerns about quality control have contributed to a slowdown in production speed. Despite the potential fare increase, Ryanair aims to mitigate the impact through cost savings on fuel. However, O’Leary emphasized that if capacity were growing, fares would be falling instead. The airline may need to revise its passenger forecast downwards due to the delayed deliveries. O’Leary expressed frustration with the confusion from Boeing and called for a single person in charge to monitor the situation daily. Boeing responded by assuring Ryanair that they are working to address their concerns and improve the quality and delivery performance of the 737 aircraft.