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Delays in Boeing 737 Max delivery impacted Ryanair (NASDAQ:RYAAY) negatively, forcing Ryanair to revise its passenger forecast down to 206 million passengers only for the fiscal year 2026 from the initially anticipated 210 million passengers.
Boeing's delayed production schedules happened due to manufacturing problems at Boeing's facilities combined with a massive union outcry in 2024, and the problem doubles down when mid-flight door panel concerns disrupted the timeline of delivery.
Ryanair demonstrated strong earnings performance in the final quarter of 2024 thanks to robust holiday travel booking combined with its settlement of its online travel agent dispute.
For the current quarter in fiscal year 2025, Ryanair gives a gloomy glance of projecting losses reaching 370 million. The company predicts profit between 1.55 billion and 1.61 billion, decreases to almost 20% for2025 compared to 2024.
Ryanair CEO Michael O'Leary said that Ryanair will resume partnership with Boeing even though the risk of delivery delays remains high, "While we continue to work with Boeing leadership to accelerate aircraft deliveries ahead of peak, the risk of further delivery delays remains high," said O'Leary.
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This article first appeared on GuruFocus.