{"id":4498,"date":"2024-11-08T14:54:40","date_gmt":"2024-11-08T14:54:40","guid":{"rendered":"https:\/\/alfanouscar.com\/blog\/?p=4498"},"modified":"2024-11-08T14:54:40","modified_gmt":"2024-11-08T14:54:40","slug":"rephrase-the-same-boeing-delivery-delays-are-pain-in-the-backside-in-a-different-way-no-more-than-118-characters-as-if-you-were-a-native-american-speaker-as-expert-on-content-creat","status":"publish","type":"post","link":"https:\/\/alfanouscar.com\/blog\/rephrase-the-same-boeing-delivery-delays-are-pain-in-the-backside-in-a-different-way-no-more-than-118-characters-as-if-you-were-a-native-american-speaker-as-expert-on-content-creat\/","title":{"rendered":"Rephrase the same Boeing Delivery Delays are \u2018Pain in the Backside\u2019 in a different way no more than 118 characters, as if you were a native American speaker as expert on content creation and dont talk about yourself or your experience"},"content":{"rendered":"
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Skift Take<\/h2>\n

The colossal Ryanair machine relies on hyper-efficiency and a ruthless scrutiny of costs. By its own admission, Ryanair was ‘over-scheduled, over-crewed, and over-costed’ this summer. It won’t let this happen again.<\/p>\n

\n Gordon Smith <\/p>\n<\/div>\n

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Ryanair warned Monday of a continued hit to passenger growth amid Boeing delivery delays. Europe\u2019s biggest airline expects to carry 210 million passengers next year, down from the previous target of 215 million. It comes as the company reported a fall in first-half net profit of 18%, slightly below analyst forecasts.\u00a0<\/p>\n

Multiple factors are at play, but a shortage of new aircraft is one of the biggest headaches. Ryanair was due to receive 11 Boeing 737 Max planes in the October to December quarter. Only two are now expected during that period. <\/p>\n

Ryanair CFO Neil Sorahan said the Boeing machinists strike meant delivery of the other nine planes will likely slip to the January-March quarter.<\/p>\n

The carrier originally planned for 29 new jets ahead of next year\u2019s peak. Sorahan cautioned that further deliveries ahead of the all-important summer season may also be delayed. \u201cI think some of those are going to slip. We\u2019re not going to get them all ahead of summer 2025. We might get 15 [new planes]. At this stage it is sensible to plan our business on the basis of slower growth next year,\u201d said the CFO.\u00a0<\/p>\n

Despite Ryanair trimming its passenger forecast, the 210 million figure would still represent a 5% increase in annual traffic. It\u2019s up \u2013 just not as much as growth-hungry airline executives would like. <\/p>\n

On Monday, the company confirmed that it expects to carry 198\u2013200 million passengers in the financial year ending March 2025. For context, by the mid-2030s it wants to attract 300 million passengers annually.<\/p>\n

O\u2019Leary Keeps Pressure on Boeing<\/h2>\n

Also speaking on Monday morning was Ryanair Group CEO Michael O\u2019Leary. He described the delays as \u201ca pain in the backside,\u201d as he continues to talk with leaders at the planemaker. <\/p>\n

\u201cWe\u2019re still working closely with Kelly Ortberg, Stephanie Pope, and the team to accelerate deliveries as best we can. However, the risk of delays is rising. I think we need to accept that we\u2019re not going to get all 29 of those aircraft in advance of summer 2025,\u201d he said.<\/p>\n

O\u2019Leary wants to avoid a repeat of this summer where the airline was \u201cover-scheduled, over-crewed and over-costed\u201d due to a mismatch in resources and operations.<\/p>\n

In line with other affected customers, the Irish low-cost carrier has received compensation from Boeing for the delays. However, O\u2019Leary questioned the amount and the format of the financial redress. \u201cWe are receiving modest compensation, but Boeing wants to restructure the compensation so it\u2019s coming in the form of maintenance credits. It is not significant. It certainly doesn\u2019t offset the loss of the five million passengers, or the further five million passenger loss in [financial year] 2026.\u201d<\/p>\n

Ryanair is one of Boeing\u2019s largest commercial aircraft customers. Photo: Boeing<\/figcaption><\/figure>\n

Earlier this year, the Federal Aviation Administration said it would not grant an expansion of production for the 737 Max program. This followed a serious incident onboard an Alaska Airlines plane on January 5 when a door plug blew off mid-flight. Even when the current machinists strike is resolved, the FAA decision will make it harder for Boeing to ramp up deliveries to airline customers.<\/p>\n

All Eyes on the Max 10<\/h2>\n

The Ryanair Group had 172 Boeing 737 Max jets in operation as of October 31. Its total fleet comprises 608 planes. The company is keen to receive the new aircraft as they are cheaper to run and can carry more passengers at a lower average cost than older models.<\/p>\n

After the current set of 737 Max 8 planes is handed over to Ryanair, no further deliveries are due until 2027. Notably, these are for the 737 Max 10 aircraft that is yet to be certified by aviation regulators. It is larger than the Max 8 and will be the biggest plane in the Ryanair fleet.<\/p>\n

Speaking on Monday, Sorahan appeared confident that despite supply chain problems and regulatory hurdles, Ryanair\u2019s current timeline could be met. <\/p>\n

\u201cThe Max 10 won\u2019t be certified until the [smaller] Max 7 is certified. We understand that the Max 7 is on track to be certified in the first half of 2025. If that happens, then I think there\u2019s a very good chance that the Max 10 will be certified in H2 of 2025. That will put us on the road to receive our first Max 10 in the first half of 2027,\u201d said the Ryanair CFO.<\/p>\n

European ATC a \u2018Shambles\u2019<\/h2>\n

Looking beyond aircraft bottlenecks, O\u2019Leary also took issue with another of his favorite gripes, describing air traffic control across Europe this summer as \u201ca shambles.\u201d<\/p>\n

\u201cWe had record ATC delays, particularly on the first wave of departures. This is due to ATC short staffing, and the staff they have not turning up to work. It\u2019s completely unacceptable. There\u2019s no reason why that first wave of flights should be delayed as there\u2019s nothing up in the sky.\u201d<\/p>\n

O\u2019Leary called for two changes to improve the situation: more ATC staff, particularly for early morning departures, and the right for planes to overfly countries during national ATC strikes. \u201cIf [the European Commission] implemented those two simple measures, both of which are within their legal power, you\u2019d eliminate about 90% of ATC delays, and there would be a huge environmental gain for the industry,\u201d claimed O\u2019Leary.\u00a0<\/p>\n

Ryanair\u2019s average fares fell 10% in the six months to September 30. The airline cited consumer cost-of-living pressures and continued high interest rates as key factors. O\u2019Leary said the fall in airfares \u201cappears to be continuing to moderate,\u201d but the airline \u201cremains cautious on the Q3 average fare outlook.\u201d<\/p>\n

Ending on a more optimistic note, the Ryanair chief described forward bookings and demand for the current third quarter (October through December) as \u201cstrong.\u201d<\/p>\n

Skift has contacted Boeing for comment.<\/p>\n

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Airlines Sector Stock Index Performance Year-to-Date<\/h3>\n

What am I looking at?<\/strong>\u00a0The performance of airline sector stocks within the\u00a0ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.<\/p>\n