Ryanair confirms flight cuts as Boeing deliveries drop to 40

Ryanair Holdings Plc said it will only receive 40 Boeing Co. Max jets before the end of June rather than the 57 unites originally anticipated, forcing the airline to reduce flight frequencies across its network as its sole aircraft provider grapples with manufacturing issues.

As a result of the delays, the carrier’s annual passenger forecast will drop to just under 200 million, compared with a previous goal of 205 million for the fiscal full year ending March 2025, according to a statement on Friday.

Ryanair has already put some cutbacks in place such as Dublin, Milan Malpensa and Warsaw Modlin, which Chief Executive Officer Michael O’Leary said are higher-cost airports. The CEO said Boeing management continues to have his “wholehearted” support.

Boeing was thrown into turmoil in early January after a panel on a 737 Max 9 jet operated by Alaska Airlines blew off shortly after takeoff. The incident forced Boeing to slow its output as regulators review quality controls and customers scrutinize the planemaker. Even before the incident, Boeing had trouble sticking to delivery schedules agreed with Ryanair. 

“We are very disappointed at these latest Boeing delivery delays,” the Irish budget carrier said in the release. Ryanair will work with Boeing to take deliveries from July to September, but the airline said it won’t be able to sell seats on these aircraft this summer because of the uncertainty around the delays.

The company cautioned that the shortfalls in deliveries, coupled with the grounding of some Airbus SE aircraft because of engine maintenance issues, will result in “slightly higher air fares” across Europe during the peak summer period.

Deutsche Lufthansa AG and Wizz Air Holdings Plc have had to ground some Airbus A320-family planes for inspections because of an issue affecting Pratt & Whitney engines. The turbine problems, combined with Boeing delays, are set to create tight capacity in Europe as passengers jet off for summer vacations.

Ryanair declined as much as 1% in Dublin trading. The stock has gained about 4.9% in value this year. 

(Updates with share price.)