Ryanair (RYA.I) will carry 198 million to 200 million passengers in the financial year from April versus the 205 million previously forecast, after announcing cuts to its summer schedule on Friday due to Boeing (BA.N) delivery delays.
The company was due to receive 57 Boeing MAX 8200 planes by the end of April, but a deepening crisis at Boeing, which has been prohibited from ramping up 737 MAX production, means it will deliver just 40 jets before the end of June, Ryanair said.
The Irish airline, Europe's largest by passenger number flying 184 million this year, said it will have to reduce around 10 aircraft lines of flying from its 600-strong fleet for the peak summer months of July, August and September as a result.
"We expect these latest Boeing delivery delays combined with the grounding of up to 20% of our Airbus competitors’ A320 fleets in Europe will lead to more constrained capacity and slightly higher air fares for consumers in Europe in Summer 2024," Ryanair CEO Michael O'Leary said.
"Boeing continues to have Ryanair's wholehearted support as they work through these temporary challenges, and we are confident that their senior management team, led by Dave Calhoun (CEO) and Brian West (CFO), will resolve these production delays and quality control issues in both Wichita and Seattle."
Ryanair shares were 1% lower in early trade. O'Leary had said last week that he was reasonably confident of receiving between 40 and 45 jets for the summer.
The carrier will work with Boeing to accept deliveries from July to September and deliver some traffic growth in September and October, though it said this can only be achieved at lower fares during the shoulder months.
It said it had already implemented the schedule cuts at some of its higher cost airports, including four in Portugal, Dublin, Milan, Malpensa and Warsaw Modlin. All affected passengers have been offered alternative flight times or full refunds.
