The cost of summer flights could go up by as much as 10pc, the boss of Ryanair has warned, as he warns of a potential shortage of new planes.
Michael O’Leary has said that Ryanair will receive even fewer Boeing aircraft by the end of June than previously expected, potentially causing the budget carrier to cut its summer schedule at the busiest time of the year.
The Dublin-based airline is the first in Europe to warn of disruption due a deepening crisis at Boeing, which has been mired in a regulatory audit and has been prohibited from ramping up 737 Max production since the January 5 mid-air panel blowout of a new Alaska Airlines Max 9.
Ryanair was due to receive 57 Boeing Max 8200 planes by end-April, but just over a week ago Boeing told the airline it would receive around 50 aircraft by end-June, Mr O’Leary said. That could now change.
According to Mr O’Leary:
We don’t really know how many aircraft we’re going to get from Boeing. We’re pretty sure we’re going to get 30 to 40. We’re reasonably confident we’re between 40 and 45. And now we are far less confident we’re going to get between 45 and 50.
A Boeing spokesman said:
We are communicating with customers that some delivery schedules may change as we take the necessary time to make sure that every airplane we deliver is high quality and meets all customer and regulatory requirements.
We deeply regret the impact this is having on our valued customer Ryanair. We’re working to address their concerns and taking action on a comprehensive plan to strengthen 737 quality and delivery performance.
The delays mean Ryanair might have to remove some flights from its summer schedule, Mr O’Leary said, cutting capacity for what is expected to be a record summer of travel.
“If we only get 40, by the end of March we will have to announce some minor schedule cuts,” he said.
That means Ryanair is likely to carry only 200 million passengers for the financial year beginning in April, versus the 205 million previously forecast.
Further capacity constraints could make the carrier less competitive against low-cost rivals like easyJet.
Mr O’Leary said he would pass some of the costs of delays to customers, with prices rising by about 5pc to 10pc this summer.
