Boeing and Ryanair announced on Tuesday that Europe’s leading low-cost airline has selected the largest 737 MAX model to fuel future growth, with an order for up to 300 aircraft. The purchase agreement is the largest in Ryanair’s history and includes a firm order for 150 737-10 aircraft and options for a further 150, the companies said.
The transaction would be valued at current list prices in excess of $40,000 million (more than €36,500 million) upon completion and subject to all purchase options being exercised, Ryanair has told investors, although it is common for companies to This ensures significant discounts on reference prices, especially for orders of this magnitude.
Ryanair asserts that this purchase “represents the largest order ever made by an Irish company for products manufactured in the United States”. Given the size of the transaction, it is subject to the approval of the airline’s shareholders at the shareholders’ meeting on September 14.
Scheduled for delivery between 2027 and 2033, the aircraft is Ryanair’s commitment to full post-pandemic air travel recovery and growth. Ryanair has taken advantage of the airline troubles caused by the pandemic in some European countries to redouble its commitment to growth in a market where it is the pre-eminent leader. The company raised its forecast for 2026 to 225 million passengers from 200, the last year it released targets for. Already this summer she expects a capacity of 115% of the capacity of 2019, the last one before the pandemic.
Michael O’Leary, has used the order announcement to challenge the competition, as he likes to do: “We hope that these new, larger and more efficient aircraft will generate further unit cost savings that will be passed on to passengers in the form of lower fares . The extra seats, lower fuel consumption and more competitive aircraft prices (…) will widen the cost gap between Ryanair and competing EU airlines for years to come,” he said.
O’Leary has chosen to grow in Italy, where Alitalia has been replaced by the smaller ITA, in Portugal, where the state-owned TAP is now up for sale, and in the markets of Ireland and Spain, where incumbents have been slow to reconnect Go Start -Establishing its capacity before the pandemic.
Boeing’s new fuel-efficient B737 MAX-10 aircraft have 228 seats (21% more than the B737NG) and staggered deliveries between 2027 and 2033 will allow Ryanair to create more than 10,000 new jobs for pilots, cabin crew and engineers to facilitate traffic growth of 80% from 168 million at the end of March 2023 to 300 million annually in March 2034, the company said.
Ryanair estimates that 50% of these deliveries of new higher-capacity single-aisle aircraft will replace outdated B737NGs. According to Boeing, Ryanair has deployed a growing fleet of 737-8200 aircraft to accelerate the recovery from the pandemic and meet strong travel demand. This 197-seat model has helped the airline reduce fuel burn and emissions by more than 20% compared to the aircraft it replaces. As of December 31, 84 aircraft of this type were already integrated into the 523 fleet units of the entire group (495 Boeing 737 and 28 Airbus A320). And another 126 are awaiting receipt of a total order of 210 units of this model 737-8200, which the company describes as a “game changer” due to its potential to transform its operations.
The Irish carrier joins other companies expanding their fleets after cleaning up its balance sheets and paying down public loans. Deutsche Lufthansa announced in March the purchase of 22 new widebody jets from Airbus and Boeing worth US$7.5 billion at list price. A month earlier, Air India announced an order for 470 aircraft from the two manufacturers, marking the largest purchase in commercial aviation history to date.
“Ryanair is delighted to sign this record order for up to 300 MAX 10s with our aviation partner Boeing. These new, fuel-efficient aircraft with greener technology offer 21% more seats, burn 20% less fuel and are 50% quieter than our B737-NG,” said O’Leary.
For his part, Boeing President and CEO Dave Calhoun, in the statement announcing the agreement, affirmed that “the Boeing-Ryanair union is one of the most productive in the history of commercial aviation”. “Nearly a quarter century after our companies signed our first direct aircraft purchase, this landmark agreement will continue to strengthen our partnership.”
Ryanair is Boeing’s largest customer in Europe. The operation is a boost for the 737 Max 10, pending approval by the United States Federal Aviation Administration later this year, with first deliveries expected in 2024 after numerous delays.
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