Ryanair CEO Warns Of Ticket Price Rise, Flight Cancellation Due To Boeing Delivery Delays

(RTTNews) - Ryanair (RYA.L) CEO Michael O'Leary demanded compensation from Boeing (BA) for aircraft delivery delays, which could push the airlines to cancel flights and raise ticket prices during the peak summer months.

The executive said that Ryanair expected 57 deliveries of 737 Max-8 aircraft by June but due to manufacturing issues faced by Boeing, he doesn't really know how many aircraft would be delivered.

However, Boeing could claim that the delays fall under "excusable" category, under which the aircraft company is not liable to pay compensation.

"We've been very firm with the view it's inexcusable," O'Leary argued. "Our growth has been constrained because at this point in time we don't really know how many aircraft we are going to get".

"Boeing would try to claim that it's excusable. I think we will get some modest compensation out of Boeing. But our focus is not getting compensation out of Boeing, our focus is getting the bloody aeroplanes out of them," the executive added.

The Ryanair executive estimates to receive at least 50 aircraft by the scheduled time to work smoothly during the summer months. But if it receives only 40 by the end of March, then the company would have to make some "minor schedule cuts", which could push the prices by 5 percent to 10 percent.

O'Leary plans to cut flights from routes with multiple daily frequencies in order to avoid inconvenience to customers. He stated, "We will be able to offer affected customers alternative flights on the same day or other days."

Earlier, the airline had projected a profit of 1.9 billion euros for 2024, which would now be seriously affected due to delivery delays.

Boeing commented, "We deeply regret the impact this is having on our valued customer Ryanair. We're working to address their concerns and taking action on a comprehensive plan to strengthen 737 quality and delivery performance."

Boeing had been embroiled in controversy since last year over security and quality concerns. Some airlines such as Alaska Airlines and Panama's Copa Airlines had demanded compensation from the company for the losses caused by the grounding of 737 Max planes.