Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Ryanair (LON: RYA) said on Monday that its negotiations with Boeing for a MAX10 order have ended without any pricing agreement.
The airline said it will take delivery of over 200 B737 “Gamechanger” aircraft over the next 5 years from 2021 to 2025. According to the company, these deliveries will see Ryanair's fleet grow to over 600 aircraft capable of carrying around 200m guests per year.
However, the company had been in discussion with Boeing for 10 months about a large follow-on order for Boeing MAX10 aircraft, but “last week it became clear that the pricing gap between the partners could not be closed.”
Ryanair's CEO, Michael O'Leary, said: “We are disappointed we couldn't reach agreement with Boeing on a MAX10 order. However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.
“We have a more than sufficient order pipeline to allow us to grow strongly over the next 5 years with a Boeing 737 fleet, which will rise to over 600 aircraft and will enable Ryanair to capitalise on the extraordinary growth opportunities that are emerging all over Europe as the Continent recovers from the Covid pandemic.”
Ryanair's shares are currently trading at €16.10, up 1.29% on Monday.
Travel stocks, including Ryanair shares, have been severely impacted by the coronavirus pandemic and subsequent travel restrictions. Hotels, airlines, cruises, and car rental companies have all been affected, but could now be a good time to buy travel stocks at a discount? Are Ryanair shares included on our list of the best travel stocks to buy? Here's what our analyst had to say on the issue…
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .