Ryanair Holdings plc cut its passenger growth target for next year because of delivery delays from aircraft supplier Boeing Co.

The Irish low-cost carrier now expects 210 million passengers in fiscal 2026, down from a previous goal of 215 million, according to a statement on Monday. Ryanair said that nine aircraft planned for delivery in the fiscal third quarter will now arrive in the following three months because of an ongoing strike at the aircraft manufacturer. 

The outlook is “highly dependent on Boeing ending the strike sooner rather than later and production ramping up relatively quickly”, chief financial officer Neil Sorahan said in an interview. “We think it’s sensible at this stage to allow for slightly slower growth.”

Ryanair could be left 10 aircraft short into next year’s peak summer season, the CFO said on Bloomberg TV.

Shares fell as much as 1.8%, and were down 1.7% to €17.72 at 8.02am in Dublin on Monday.  

Limiting passenger numbers to 210 million passengers may help increase yields, Stephen Furlong and Ava Costello, analysts at Davy, wrote in a note to clients after the results. 

Ryanair is among airlines waiting for planes from Boeing, which is facing production quality issues as well as a workers strike. The manufacturer had to cap production of its top-selling jet following an almost catastrophic mid-air panel blowout on a 737 Max 9 in January.

Profit after tax in the second quarter fell 6% to €1.43 billion (US$1.60 billion or RM6.81 billion) at Ryanair, as average fares dropped 7% to €61. For the fiscal year 2025, the airline said it continues to target 198 million to 200 million passengers. 

Ryanair cautioned that fares in the fiscal third quarter will be “modestly lower” than in the same period last year, suggesting the company will have to continue to stimulate demand.  At the same time, consumers are becoming more confident as interest rates fall, Sorahan said.

The airline is still set to receive Boeing’s Max 10 aircraft in the first half of 2027 as certification timelines for the Max 7 and Max 10 remain on track, he said.

There’s a “high chance” that Ryanair will cut some UK flights after the government raised air passenger duty in the budget last week, Sorahan said. He called the move a “backwards step” and said parts of Scotland and the Midlands could be affected by the route review.

Europe’s largest budget carrier is the first of the major low-cost airlines in Europe to report earnings for the quarter. Ryanair shares have lost 7% this year, compared with a 36% decline at Wizz Air Holdings plc and a 2.5% gain at EasyJet plc.

The board announced an interim dividend of €0.223 per share, which will be paid early next year. 

  - Bloomberg