Ryanair Holdings plc has announced that it has placed an order for 300 Boeing 737-MAX-10 planes, with 150 firm orders and 150 options. The delivery of the aircraft is expected between 2027 to 2033.

Based on the current list prices, the order is valued at over $40bn and is considered the largest ever placed by an Irish company for U.S.-manufactured goods.

The transaction's size and scale mean that it will be subject to shareholder approval at Ryanair's AGM on 14th September.

Ryanair Record Orders 300 Boeing 737 MAX

Boeing's B737 MAX-10 aircraft is a fuel-efficient model with 228 seats, 21% more than B737NG models. Ryanair ordered 300 aircraft, with 150 firm and 150 optional, for phased delivery between 2027 and 2033.

It will facilitate disciplined traffic growth and create over 10,000 new high-paid jobs for pilots, cabin crew, and engineers. The delivery will enable Ryanair to increase traffic growth by 80% from 168 million at the year-end of March 2023 to 300 million p.a. by March 2034.
 

About 50% of these deliveries will replace older B737NGs, allowing Ryanair to maintain one of Europe's youngest, most fuel-efficient, and environmentally sustainable aircraft fleets.

However, due to its size and scale, the order is subject to shareholder approval at Ryanair's 14th September AGM.

Ryanair's new order of 300 Boeing 737-MAX-10 aircraft is expected to provide significant revenue growth for the company.

The increased seating capacity and improved aircraft fuel efficiency will also give Ryanair an edge over its competitors regarding unit-cost advantage.

With the sustained traffic and tourism growth expected due to this new order, Ryanair can offer lower fares and reduce emissions per flight.

Given the company's strong financial position, Ryanair anticipates that most of the capex required for the aircraft will be funded by internal cashflows. However, it will remain open to fleet financing opportunities.

Boeing CEO Comments

Dave Calhoun, the President & CEO of Boeing, expressed that the partnership between Boeing and Ryanair has been highly productive and has enabled both companies to expand affordable travel to millions of people.

This deal marks a significant milestone in their partnership, as it has been almost a quarter-century since their first direct airplane purchase.

He added that they are fully committed to delivering for Ryanair and helping Europe's largest airline group to achieve its objectives by providing the lowest fares in Europe.

Ryanair CEO Insights

Ryanair Group's CEO, Michael O'Leary, has announced that the company is delighted to sign this historic agreement with Boeing for up to 300 MAX-10s, which will create around 10,000 new jobs for skilled aviation professionals over the next decade.

These new planes are fuel-efficient, equipped with greener technology that is 50% quieter, offers 21% more seats, and burns 20% less fuel than the B737NGs.

Ryanair expects that these planes, together with the remaining Gamechanger deliveries, will continue strengthening its position as Europe's leading airline in all of Europe's main economies. Ryanair is currently the number one or number two airline.

The new, larger, more efficient, and greener aircraft are expected to drive down unit costs, allowing Ryanair to offer lower airfares to passengers and increase the cost gap between Ryanair and competing EU airlines, making the Boeing MAX-10 the perfect growth aircraft order for Ryanair, its customers, its employees, and its shareholders.