Ryanair’s CEO, Michael O’Leary, has issued a stark warning about potential ticket price increases of up to 10% due to delays in receiving 57 Boeing 737-8200s. Originally anticipating 50 planes by June, Ryanair now faces the possibility of receiving only 30, prompting concerns over schedule adjustments and elevated fares, compounded by existing 5-10% price hikes.
The airline is actively pursuing compensation from Boeing for what O’Leary deems “inexcusable” delays. These setbacks are linked to recent problems with Boeing aircraft, including instances of emergency landings and mis-drilled holes on fuselages, casting a shadow over the manufacturer’s reliability.
In response to the challenges posed by delayed deliveries, Ryanair is considering legal action against Boeing regarding the 737 Max-8 orders, as per FT.
O’Leary expressed apprehension about meeting peak season demands and asserted the necessity of holding Boeing accountable. As of now, neither Ryanair nor Boeing has provided official comments on the potential legal proceedings. The situation underscores the broader impact of supply chain disruptions on the aviation industry and raises questions about the future relationship between Ryanair and Boeing.
Stay informed with our financial updates, stocks, bonds, commodities. Get global & political insights. Follow us & enable notifications for the latest updates.
