Ryanair CEO Sees Boeing 737 Production Rising to 48 Jets Monthly by April

DUBLIN, October 8, 2024 – Ryanair Holdings (RYAAY) CEO Michael O’Leary said Boeing (BA) could boost 737 production to 48 aircraft monthly by April, signaling recovery in the planemaker’s manufacturing capacity. The projection suggests Boeing may exceed its previously stated target of reaching 42 monthly 737 MAX deliveries by year-end, potentially alleviating supply constraints that have pressured airline expansion plans.

Boeing 737 production could reach 48 monthly by April
Ryanair is Boeing’s largest European customer for narrowbody jets
Production target exceeds Boeing’s previous 42-per-month guidance

Market Context

Boeing shares have struggled this year amid persistent production challenges and regulatory scrutiny following safety incidents. The aerospace giant currently produces approximately 38 737 MAX aircraft monthly, well below pre-crisis levels of over 40 jets ¹.

Rival Airbus delivered 507 aircraft in the first nine months of 2024, maintaining its competitive edge in the narrowbody market ². The production ramp-up timeline could help Boeing narrow this delivery gap with its European competitor.

Production Outlook

O’Leary expressed confidence that Boeing would achieve 42 monthly 737 deliveries by October, before reaching the 48-unit target by March or April 2025 ³. Boeing earlier indicated it did not foresee supply chain problems preventing the increase to 42 monthly aircraft ⁴.

The timeline represents a significant recovery for Boeing’s 737 program, which faced severe disruptions following two fatal crashes in 2018-2019 and subsequent regulatory grounding. Recent delivery momentum has improved, with Boeing delivering 10 jets to Ryanair in just 10 days ⁵.

Customer Relationship

Ryanair serves as Boeing’s largest European customer and operates one of the world’s largest 737 fleets ⁶. The Irish low-cost carrier’s growth strategy depends heavily on timely aircraft deliveries to maintain its aggressive expansion across European markets.

The airline has weathered production delays by extending aircraft utilization and adjusting route planning. O’Leary’s optimistic production forecast suggests improved visibility into Boeing’s manufacturing schedule, critical for Ryanair’s capacity planning.

Industry Implications

Higher 737 production rates would benefit the broader airline industry, where aircraft shortages have constrained growth and kept lease rates elevated. The Federal Aviation Administration recently restored Boeing’s authority to conduct certain aircraft certifications, potentially streamlining the delivery process ⁷.

Airlines globally have faced delivery delays from both Boeing and Airbus, forcing carriers to extend older aircraft leases and limiting fleet renewal plans. Accelerated Boeing production could ease these constraints and support airline profitability.

Not investment advice. For informational purposes only.