Ryanair has very much changed its tone on Boeing. Talking to analysts after announcing stellar profits of €2.4 billion for the six months to the end of September, its chief executive Michael O’Leary, said the US aircraft manufacturer’s new management was doing a good job.
Not so long ago, Ryanair regularly complained about delays in the delivery of new aircraft from the Seattle-based group. Now, O’Leary expects the first of the Boeing 737 Max 10s it has ordered to start arriving on time in spring 2027.
These jets will carry 20 per cent more passengers on 20 per cent less fuel, prompting O’Leary to declare that Ryanair wants “these aircraft as soon as we can get them”.
Even with the US government shut down, he believes regulators should certify the Max 10 in the third quarter of next year, in time for the first 15 to begin arriving before summer 2027. The airline has the option of taking up to 300.
Neil Sorahan, its chief financial officer, indicated that it could borrow to pay for the new jets as the deliveries increase from around 15 a-year from 2027 to closer to 50 towards the decade’s end. The carrier will pay for the first tranches itself, which Sorahan pointed out was “the cheapest way”.
Ryanair expects to repay a €1.2 billion bond raised shortly after Covid by May next year from its own cash flows, giving it plenty scope to borrow more cash should it decide to do so.
This will position the Irish airline group to continue growing into the next decade. O’Leary predicted that it would carry 225 million passengers in the 12 months ended March 31st 2028, while that figure should rise to 300 million six years later.
Currently, the airline earns €10 profit for every passenger carried. Its chief executive believes that could increase to around €14 as travel demand grows and rivals continue to squeeze capacity.
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