Supply Shortage Reduces Ryanair's Aircraft Fleet and Passenger Forecast

In a phase marked by entrepreneurial turbulence within the aviation industry, the European low-cost airline Ryanair has suffered a setback due to delayed deliveries by the aircraft manufacturer Boeing. As Ryanair recently communicated, the airline will be able to receive only 40 of the 57 originally ordered 737-Max medium-haul jets by summer. This news forces Ryanair to correct its original business plans. Michael O'Leary, CEO of the Irish airline, has had to lower his expectations for passenger volumes for the next fiscal year and now forecasts a figure of fewer than 200 million. This latest revision of passenger numbers, once estimated at 205 million, follows the ongoing uncertainty in the supply chain and Boeing's production capacity. Since two fatal crashes of Boeing 737-Max aircraft about five years ago, the world's second-largest aircraft manufacturer has been in a profound crisis. Although flight bans for this model have been lifted, a recent narrowly avoided incident involving a Boeing 737-9 Max of Alaska Airlines and the subsequent stricter scrutiny by the US Federal Aviation Administration (FAA) have put Boeing in a difficult position. Moreover, the American corporation has been prohibited from increasing production of the affected 737-Max series. Ryanair's business strategy for the upcoming summer season is thereby under scrutiny, and O'Leary emphasizes that he will refrain from including any further aircraft deliveries in his planning for the time being. The backlog of deliveries means not only dampened growth expectations for Ryanair but also tests the airline's adaptability and flexibility.