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Ryanair Fail to Reach Agreement With Boeing For Max 10

Sam Boughedda trader
Updated 6 Sep 2021

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.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.