Ryanair shares higher as O'Leary warns of higher prices
Shares in low-cost airline Ryanair Holdings were trading higher on Monday despite CEO Michael O’Leary warning that passenger prices could go up about 10% this summer due to Boeing plane delivery delays.
Boeing has faced regulator challenges since an accident in January resulted in part of one of its jets blowing up during a flight. O’Leary said the delays could mean it will have to reduce passenger numbers too, as IGTV’s Angela Barnes explains.
(AI Video Summary)
Ryanair
Ryanair, an airline company, is facing some difficulties with Boeing plane delivery delays. The CEO, Michael O'Leary, has warned that this could result in higher fares for passengers. O'Leary estimates that prices could go up by 10% this summer due to a shortage of new planes. Surprisingly, investors have not been worried about this news. In fact, Ryanair's share price has actually increased by 0.39% on the day.
Boeing
The Boeing plane delivery delays are a result of a previous accident in January where one of their planes had an explosion during a flight. This has led to regulators closely scrutinizing Boeing, which has caused the delays in delivering new planes to Ryanair. Although Ryanair had previously predicted that they would carry 205 million passengers by March 2025, an increase from the previous year, O'Leary now suggests that this number may need to be revised down to around 200 million due to the potential shortage of aircraft.
Despite these challenges, investors still have confidence in Ryanair's ability to overcome them. They believe that the company will continue to grow and succeed. The ongoing Boeing delivery delays have created uncertainties for Ryanair's operations, but shareholders remain optimistic.
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