European low-cost carrier Ryanair (RYAAY) has cut its passenger outlook for a second time due to failures by Boeing (BA) to deliver enough aircraft.
The company said it would carry 206 million passengers in its Fiscal year 2026, down from the previous goal of 210 million.
Frustratingly for the company, it had already in November cut the guidance from 215 million to 210 million due to delays at Boeing.
Ryanair said it expects FY25 traffic to rise 9% to reach almost 200 million, subject to no further adverse news on Boeing delivery delays.
Boeing Strikes Weigh
Throughout last year Boeing was hit by a harmful strike and quality problems that led it to slow its manufacturing process.
“While B737 production is recovering from Boeing’s strike in late 2024, we no longer expect Boeing to deliver sufficient aircraft ahead of summer 2025,” said Ryanair CEO Michael O’Leary.
Ryanair had 172 Boeing 737-8200 “Gamechangers” in its 609 aircraft fleet as of the end of 2024.
O’Leary said he is “hopeful” that a remaining 29 Gamechangers in its 210 orderbook will be delivered before March 2026.
“We continue to work with Boeing to accelerate aircraft deliveries and visited Seattle earlier this month,” he added.
Ryanair thinks the Boeing MAX-10 will be certified in 2025 to allow delivery of its 15 of these aircraft by spring 2027.
The news came as Ryanair reported a Fiscal Q3 profit after tax of €149 million ($156 million), compared to the prior-year €15 million, as traffic grew 9%. Cumulative nine-month profits of €1.94 billion were down 12% on the same period a year before, with air fares down 8% on average.
Is BA a Good Stock to Buy?
Wall Street analysts have a Moderate Buy consensus rating on BA stock based on 12 Buys, seven Holds and one Sell assigned in the past three months. After a 13% loss in its share price over the past year, the average BA price target of $190.50 per share implies 8% upside potential.
