737 MAX delays have hit Europe’s largest budget airline Ryanair, which today lowered its expectations for passenger growth next summer from 7% to 3%
By Oliver Griffin Updated July 16, 2019 5:37 am ET Ryanair Holdings RYAAY 0.19% PLC said delays in deliveries of Boeing Co. BA -1.02% ’s 737 MAX passenger jet will lower growth next summer, forcing Europe’s largest budget airline to close some of its bases and make cuts at others this winter.
The 737 MAX is the latest version of Boeing’s best-selling, single-aisle passenger jet. It competes with a version of Airbus SE ’s narrow-body A320. The two planes have grown into the aviation industry’s workhorses, prized by airlines for their fuel-efficient engines, expanded range and smaller size—allowing flexibility to serve smaller markets.
Ryanair said it remains committed to the 737 MAX jets and now expects it will return to flying service before the end of 2019, though it added that an exact date remains uncertain. The airline is a large buyer of the MAX 200, a variant of the new jet, having ordered 58 of the aircraft, but is now planning its 2020 summer schedules based on taking up to 30 by the end of May 2020.
Ryanair said the grounding would reduce its overall fleet size next year. It expects to add 30 jets to its network by next summer, instead of the planned 58. This also means that passenger numbers in the year to March 2021 are now expected to be around 157 million, down from 162 million it previously forecast.
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