Aviation

Ryanair Places Its Biggest Boeing Order for Up to 300 737 MAX Jets

Ryanair to purchase 150 LEAP-1B-powered 737-10 aircraft

– Deal includes 150 firm orders and 150 options for 737-10 model

– Selection of the largest 737 MAX jet helps Ryanair expand its business with more seats and better environmental performance

– 737-10 complements Ryanair’s 737-8-200 fleet, advances sustainability goals

Ryanair Holdings plc today (9 May 2023) ordered 300 new Boeing 737-MAX-10 aircraft (150 firm and 150 options) for delivery between 2027 to 2033.

When finalized, and subject to all options being exercised, this deal is valued at over $40bn at current list prices and is the largest order ever placed by an Irish Company for US manufactured goods. Given the size and scale of the transaction, it will be subject to shareholder approval at Ryanair’s 14 Sept. AGM.

Boeing’s new fuel-efficient, B737-MAX-10 aircraft have 228 seats (21% more than the B737NG) and the phased deliveries between 2027 and 2033 will enable Ryanair to create more than 10,000 new high-paid jobs for pilots, cabin crew, and engineers, to facilitate disciplined traffic growth of 80% from 168m in the year ending March 2023 to 300m p.a. by March 2034.

Ryanair expects 50% of these deliveries will replace older B737NGs, which will allow Ryanair to continue to operate one of Europe’s youngest, most fuel-efficient, and environmentally sustainable aircraft fleets.

In addition to the very significant revenue growth this new order offers Ryanair, the extra seats (coupled with greater fuel and carbon efficiency) will further widen Ryanair’s unit-cost advantage over all EU competitor airlines.

This new order will enable Ryanair to deliver sustained traffic and tourism growth at lower fares (and lower emissions per flight) across all European countries where Ryanair continues to lead the post-Covid traffic, tourism and jobs recovery.

Given the strength of the Ryanair Group’s balance sheet, its industry-leading credit rating, and the approx. 2-year gap between the last delivery of the B-8 200 “Gamechanger” aircraft in FY25, and the first MAX-10 delivery in FY27, the Group anticipates that capex will be substantially funded from internal cash flows, although the Group will remain opportunistic in its fleet financing strategy.

Aviation

Boeing Faces New Setbacks as 777X Delays Extend and scraps B767-300F

Boeing’s challenges continue as employees halted production due to a strike, creating new obstacles for delivering aircraft to customers. The company now faces financial losses from delays in the delivery of its boeing 777x aircraft.

Boeing recently announced that the new delivery date for the 777-9 will be in 2026, with the freighter variant scheduled for 2028. This news has been frustrating for airlines that have committed to and are waiting for the aircraft.

Mega Comparison of Boeing 777x vs A350-1000 Aircraft

The Boeing 777X program, which began in early 2019, was initially delayed to 2021 due to COVID-19 disruptions. Subsequent issues, including defects found during testing, have placed the program under scrutiny by the FAA, which insists on the aircraft meeting all safety standards before entering service. Boeing is now facing pressure from both airlines and investors.

Boeing 777x Delay

New Commercial Airplanes expects to incur pre-tax charges of $3.0 billion related to the Boeing 777X and 767 programs.

The company forecasts a $2.6 billion pre-tax charge due to the updated timeline, which accounts for delays in flight testing for the 777-9 and the impact of the IAM (International Association of Machinists) work stoppage. The first 777-9 delivery is now expected in 2026, with the 777-8 freighter following in 2028.

Exploring the Boeing 777x: Highlights from the Debut at …

In addition, Boeing plans to conclude production of the 767 freighter, resulting in a $0.4 billion pre-tax charge. From 2027 onwards, the company will solely produce the 767-2C aircraft for the KC-46A Tanker program.

In August 2024, Boeing grounded its 777X test fleet after detecting a failure in a key engine mounting structure during a routine inspection. The new boeing 777x, powered by the GE9X engine, is the world’s largest and most efficient twin-engine jet, but this issue has caused further setbacks.

Boeing 777x, A close-up of the engine, landing gear, and wing

Comparison of 777x vs A350

Meanwhile, the Airbus A350 continues to secure new orders from airlines, becoming a strong competitor in the wide-body aircraft segment. While the a350 vs b777 offer similar ranges, the 777X is designed to carry a heavier payload.

In other developments, Boeing has hinted at starting production of a new mid-sized aircraft, the Boeing 797, which would likely compete with the Airbus A321 XLR.