Ryanair CEO: Boeing Delivery Delays are ‘Pain in the Backside’

04.11.2024 - 15:49 / skift.com / Michael Oleary / Gordon Smith / Kelly Ortberg

Ryanair warned Monday of a continued hit to passenger growth amid Boeing delivery delays. Europe’s biggest airline expects to carry 210 million passengers next year, down from the previous target of 215 million. It comes as the company reported a fall in first-half net profit of 18%, slightly below analyst forecasts. 

Multiple factors are at play, but a shortage of new aircraft is one of the biggest headaches. Ryanair was due to receive 11 Boeing 737 Max planes in the October to December quarter. Only two are now expected during that period.

Ryanair CFO Neil Sorahan said the Boeing machinists strike meant delivery of the other nine planes will likely slip to the January-March quarter.

The carrier originally planned for 29 new jets ahead of next year’s peak. Sorahan cautioned that further deliveries ahead of the all-important summer season may also be delayed. “I think some of those are going to slip. We’re not going to get them all ahead of summer 2025. We might get 15 [new planes]. At this stage it is sensible to plan our business on the basis of slower growth next year,” said the CFO. 

Despite Ryanair trimming its passenger forecast, the 210 million figure would still represent a 5% increase in annual traffic. It’s up – just not as much as growth-hungry airline executives would like.

On Monday, the company confirmed that it expects to carry 198–200 million passengers in the financial year ending March 2025. For context, by the mid-2030s it wants to attract 300 million passengers annually.

Also speaking on Monday morning was Ryanair Group CEO Michael O’Leary. He described the delays as “a pain in the backside,” as he continues to talk with leaders at the planemaker.

“We’re still working closely with Kelly Ortberg, Stephanie Pope, and the team to accelerate deliveries as best we can. However, the risk of delays is rising. I think we need to accept that we’re not going to get all 29 of those aircraft in advance of summer 2025,” he said.

O’Leary wants to avoid a repeat of this summer where the airline was “over-scheduled, over-crewed and over-costed” due to a mismatch in resources and operations.

In line with other affected customers, the Irish low-cost carrier has received compensation from Boeing for the delays. However, O’Leary questioned the amount and the format of the financial redress. “We are receiving modest compensation, but Boeing wants to restructure the compensation so it’s coming in the form of maintenance credits. It is not significant. It certainly doesn’t offset the loss of the five million passengers, or the further five million passenger loss in [financial year] 2026.”

Earlier this year, the Federal Aviation Administration said it would not grant an expansion of production for the