Thomas Lyons 
Ryanair, Europe’s largest airline group, has announced a significant investment in its fleet, with a deal to purchase 300 new 737-MAX-10 aircraft from American airplane manufacturer Boeing. The deal is worth over $40 billion (€36.4 billion) and is expected to be the largest order ever placed by an Irish company for US-made goods. The deal includes a firm commitment for 150 of the planes, with an option for an additional 150. Ryanair anticipates delivery between 2027 and 2033.
The airline expects that 50% of these deliveries will replace its older Boeing 737 Next Generation aircraft. The new planes will have 228 seats, 21% more than the previous model, and will enable Ryanair to grow its traffic numbers by 80% to 300 million passengers a year by March 2034. The investment, along with the order for its remaining Gamechanger aircraft with Boeing, is expected to create 10,000 new jobs for pilots, cabin crew, and engineers. The jobs will be located across all of Europe’s main economies, where Ryanair is currently the number one and number two airline.
Ryanair said that more seats, along with the greater fuel efficiency of these planes, would enable it to “further widen” its unit-cost advantage over its competitors. The airline’s CEO, Michael O’Leary, said that the new, larger, more efficient, greener aircraft would drive further unit cost savings, which would be passed on to passengers in lower airfares. The airline is claiming that the investment is part of its commitment to delivering significant revenue and traffic growth across Europe.
However, the size and scale of the deal require approval from shareholders at the company’s annual general meeting, scheduled for September 14. Ryanair’s CEO, Michael O’Leary, expressed confidence that the deal would be approved, stating that it was “incredibly good value” for the airline.
The partnership between Ryanair and Boeing has been described by Boeing CEO Dave Calhoun as “one of the most productive in commercial aviation history”. He also expressed the company’s commitment to delivering for Ryanair and helping the airline achieve its goals by offering its customers the lowest fares in Europe.
While the deal marks a significant step-up in the relationship between Ryanair and Boeing, the airline has been impacted by delays in the production process at the airplane manufacturer. Ryanair had been expecting to take delivery of 24 planes from Boeing between April and June, but the company had to pause production after a problem was identified in the production process used by its supplier Spirit Aerosystems. Ryanair announced that it would likely trim some flights in August due to delivery delays from Boeing, but there would be no material impact on customers.
In conclusion, Ryanair’s investment in 300 new 737-MAX-10 aircraft from Boeing is a significant move for the airline as it seeks to grow its traffic numbers and widen its unit-cost advantage over its competitors. The deal is expected to create 10,000 new jobs and is part of Ryanair’s commitment to delivering significant revenue and traffic growth across Europe. While the airline has been impacted by delays in the production process at Boeing, it remains confident that the deal will be approved by shareholders at its annual general meeting later this year.
