Ryanair may be forced to reduce flights and boost costs during the high summer this year because crisis-hit Boeing cannot deliver the promised planes.
Michael O’Leary, the CEO of Europe’s largest airline by passenger volume, stated in a widely reported press event Friday that air tickets could climb by up to 10% due to delays in aircraft delivery.
Boeing has faced additional safety and quality issues since early January when a piece of the fuselage on a 737 Max 9 operated by Alaska Airlines broke off mid-flight. Further issues have surfaced with some 737s afterwards, affecting Boeing’s production timetable. It has also postponed certification for two new versions of the plane.
‘Inexcusable.’ Ryanair Says It May Have To Raise Fares This Summer Because Of Boeing
According to O’Leary, Ryanair previously expected Boeing to deliver 57 Max 8-200 jets by the end of April. On Friday, the CEO stated that he was “pretty sure” the airline would acquire between 30 and 40 planes but “far less confident” about receiving between 45 and 50.
“We don’t really know how many aircraft we’re going to get from Boeing,” he said, according to Reuters.
A Ryanair representative told CNN that the stories about O’Leary’s media briefing were correct and that the business had nothing to offer.
O’Leary said that if only 40 aircraft are delivered, Ryanair may have to “announce some minor schedule cuts” by the end of March. This might increase plane fares by 5% to 10% this summer.
‘Inexcusable.’ Ryanair Says It May Have To Raise Fares This Summer Because Of Boeing
Demand for international travel increased dramatically last year, prompting airfares to skyrocket worldwide. Ryanair’s Ireland-listed shares have increased 69% since the beginning of 2023.
“It is inexcusable.” Boeing will attempt to justify its actions. “I believe we will receive some modest compensation from Boeing,” O’Leary added. “At the point our focus is getting the bloody aeroplanes.”
A Boeing (BA) spokeswoman stated that the business contacted customers about modifications to its delivery timetable. “We (are taking) the necessary time to make sure that every aeroplane we deliver is high quality and meets all customer and regulatory requirements.”
‘Inexcusable.’ Ryanair Says It May Have To Raise Fares This Summer Because Of Boeing
“We genuinely regret the impact this is having on our valued customer, Ryanair. We’re striving to address their issues and implement a thorough plan to improve 737 quality and delivery performance.”
O’Leary’s remarks come nearly a month after he voiced “a lot of confidence” in Boeing’s management. He congratulated Boeing’s CEO and CFO, David Calhoun and Brian West, for their efforts to turn around the company. “I think safety is their number one byword,” he remarked in a video uploaded to Ryanair’s website.
SOURCE – (CNN)
