Ryanair Places $40 Billion Order for 737 Max 10 Jets with Boeing.

In a gamble on the post-pandemic travel resurgence, Ryanair agreed to buy as many as 300 of Boeing’s biggest 737 Max aircraft, making a significant commitment from one of the company's most significant clients.

Although consumers sometimes receive significant discounts on significant purchases, the order, which consists of 150 firm purchases and an equal number of options, has a value of $40 billion, according to a statement released today by Boeing and Ryanair.

The major acquisition of Boeing's biggest 737 model signifies an essential endorsement from one of the US manufacturer's most devoted clients and demonstrates how airlines are once again prepared to go out on fleet improvements as air traffic recovers. According to Ryanair, this is the largest order an Irish firm has ever placed for products made in the US.

According to Ryanair Chief Executive Officer Michael O'Leary, "These new, larger, more efficient, greener aircraft are expected to drive further unit cost savings in addition to delivering significant revenue and traffic growth across Europe."

The goal of the deliveries, which will begin in 2027 and 2033, is to replace numerous older 737NG aeroplanes.

Largest Customer

The workhorse type served as the foundation for Ryanair's entire fleet of short-haul aircraft, making it the largest customer of Boeing in Europe. O'Leary said in late March that the airline has picked up discussions with Boeing for more planes.

The low-cost carrier is one of several organisations that have forecast a spike in summer bookings, especially for shorter-haul journeys to warm locations like Spain or Italy. IAG, the parent company of British Airways, increased its year-end projection last week.

After repairing their balance sheets and paying back government loans, Ryanair follows other airlines in growing their fleets. In March, Deutsche Lufthansa announced that it has placed a $7.5 billion list price order with Airbus and Boeing for the purchase of 22 new widebody aircraft. The biggest order in commercial aviation history to date, Air India also placed a 470-plane contract with the two manufacturers a month earlier.

In an effort to increase traffic to 225 million passengers over the next 4 years, O'Leary is growing the fleet. O'Leary asserted in January that there is an increasing cost difference between Ryanair and other European airlines due to its larger capacity 737 Max 8, known as the 8200. He now has another advantage thanks to the much bigger Max 10.

Both Boeing and Ryanair's stocks are currently up 1.7% on the day.

(bloomberg.com, irishtimes.com)