Dublin, July 23 - The Irish low-cost carrier, Ryanair, has decided to maintain its substantial order for Boeing 737 MAX 10 aircraft after receiving formal assurances from Boeing that deliveries will proceed as scheduled. This decision, announced during Ryanair’s latest earnings call, marks a pivotal moment for the airline, which had previously considered switching a portion of its order to the smaller 737 MAX 8-200 due to concerns over potential delays. The confirmation from Boeing’s Commercial Airplanes CEO, Stephanie Pope, provided in writing, has alleviated these concerns, allowing Ryanair to proceed with its original plan to integrate the larger MAX 10 into its fleet starting in early 2027.
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Ryanair’s order for the 737 MAX 10, placed in May 2023, comprises 150 firm orders with options for an additional 150 aircraft, representing one of the largest commitments for this yet-to-be-certified variant. Valued at over $40 billion at list prices, though likely reduced through significant discounts typical in such large deals, the order underscores Ryanair’s ambition to expand capacity and maintain its position as Europe’s leading low-cost airline. The 737 MAX 10, with its 228-seat configuration, offers 21% more seats than Ryanair’s current Boeing 737-800s, aligning with the airline’s strategy to lower per-seat operating costs and support its goal of carrying 300 million passengers annually by 2034, an 80% increase from the 168 million passengers transported in its last financial year.
The decision to stick with the MAX 10 was not made lightly, as Boeing has faced persistent challenges with the aircraft’s certification, which is still pending with the U.S. Federal Aviation Administration (FAA). Boeing anticipates certification by the end of 2025, enabling deliveries to commence as planned. Earlier uncertainties, compounded by Boeing’s production constraints and a machinists’ strike, had prompted Ryanair to evaluate the MAX 8-200, a high-density variant already operational in its fleet with 197 seats. The MAX 8-200’s quicker availability made it an attractive contingency, but Boeing’s written commitment to the MAX 10’s timeline has reassured Ryanair’s leadership, led by CEO Michael O’Leary, of the aircraft’s long-term value.
Despite the optimism, risks remain. The MAX 10’s certification delays, coupled with potential U.S.-EU trade tariffs, could complicate Ryanair’s plans. The airline has mitigated some financial risk through fixed-price contracts that shift tariff-related costs to Boeing. Additionally, Ryanair’s fleet strategy remains flexible, with the option to retain older 737-800s if delays persist. Currently, Ryanair operates 136 MAX 8-200s alongside 409 earlier-generation 737s, with plans to grow its MAX fleet to 210 MAX 8s and up to 300 MAX 10s. The airline’s confidence in Boeing, reinforced by improved delivery quality and ongoing collaboration, positions the MAX 10 as a cornerstone of its cost-efficient, high-capacity growth model, ensuring Ryanair continues to offer some of Europe’s lowest fares while expanding its network. This strategic decision not only strengthens Ryanair’s partnership with Boeing but also signals stability for the manufacturer amid its challenges, reinforcing the MAX 10’s role in the airline’s future.