Ryanair warns of higher fares as it cuts winter flights

Ryanair is facing significant disruption to its summer flight schedule and will likely raise fares by 5% to 10% due to ongoing delays in receiving Boeing 737 Max aircraft. The airline, which had anticipated receiving 57 Boeing 8200 variant aircraft by the end of April, was recently informed by Boeing that it would likely receive only around 50 by the end of June. Ryanair's CEO, Michael O'Leary, expressed significant uncertainty, stating the airline might receive as few as 30 to 40 planes, down from a previous estimate of 45-50.

These delivery shortfalls will necessitate "minor schedule cuts" if only 40 aircraft are delivered by the end of March. This could lead to a reduction in Ryanair's passenger forecast for the financial year starting in April, dropping from 205 million to 200 million. O'Leary was highly critical of Boeing, describing the situation as a "s---show in Seattle" and accusing the aerospace giant of making "optimistic, broken promises." Ryanair is also discussing potential financial compensation with Boeing for these delays.

This news follows other recent developments for Ryanair, including a projected fall in fares in the current quarter due to global uncertainties, despite earlier forecasts of fare increases due to strong demand. For example, the airline previously expected fares to climb by up to 9% and passenger numbers to grow to almost 208 million. However, recent geopolitical events, such as the Middle East conflict, have dampened fares and increased fuel costs, leading to a 34% drop in after-tax profit to €538 million ($616 million) in its fiscal first quarter, below analyst forecasts of €579 million. Ryanair also plans to cut one million seats to and from Spain this winter due to increased airport charges by Spanish airport operator AENA, which will impact low-cost travel options to the region, particularly affecting regional airports outside of Madrid and Barcelona. The airline currently hedges 80% of its fuel requirements until March 2027 at $67 per barrel, and 15% for the following year at $85 per barrel.