Ryanair orders at least 150 of Boeing’s largest 737 Max planes

• Boeing won an order from low-cost European carrier Ryanair for at least 150 of the manufacturer’s 737 Max planes.
• The budget carrier’s order is its largest and the latest in a string of big sales for Boeing.
• The manufacturer is in the process of ramping up production of its bestselling plane.

Ryanair said it plans to buy at least 150 Boeing 737 10 Max planes with options for 150 more, after a price dispute derailed negotiations for the large order in 2021.

It’s the budget carrier’s biggest order and the manufacturer’s latest sizable deal for new planes as airlines replace aging jets and grow their fleets.

Shares of Boeing were up about 3% in morning trading Tuesday after the company reported the order, while the broader market was down.

Ryanair plans to operate the Max 10s, which haven’t yet been certified by regulators, with 228 seats on board.

The 150 planes in the firm order are worth more than $20 billion at list prices, but airlines generally receive significant discounts for such big sales. Ryanair stopped negotiations for a big Max order in September 2021 over a pricing dispute.

Ryanair CEO Michael O’Leary said the new planes will replace older 737 jets in its fleet. The aircraft will likely be delivered between 2027 and 2033, O’Leary said at a news conference. The 150 additional jets it has optioned would allow it to fly more than 300 million passengers a year by 2034 and would create 10,000 jobs by then, he said.

The ultra-low-cost airline flew 97 million passengers in the 12 months ended March 31, down from 149 million before the Covid pandemic, according to a company report.

The budget carrier’s order is the latest in a string of big sales for Boeing, which has reached agreements to sell hundreds of planes to customers including Air India, Saudia and United Airlines in recent months.

Boeing’s next challenge is ramping up production of the 737 Max. Last month the company said it aims to make 38 each month, up from 31. It also plans to increase its 787 Dreamliner production to five a month late this year, up from three.

Source: CNBC