Boeing strike to slow down Ryanair’s growth plans: CEO Michael O’Leary

Ryanair (NASDAQ:RYAAY) chief executive Michael O’Leary said on Saturday that an extended Boeing (NYSE:BA) workers’ strike could reduce the number of aircraft it receives by next summer to 20 from an expected 25.

The Irish carrier had expected to receive 30 aircraft from the U.S. planemaker by the summer of 2025, which has now been reduced to 25, and could be further cut to 20 if the strike continues for three to four weeks, said O’Leary.

O’Leary added that the low-cost airline, one of Boeing’s (BA) biggest customers, was supposed to receive 50 aircraft before the summer of 2024, but only received 35.

In an interview with Ireland’s Newstalk, O’Leary said that the airline had to slow its growth for the year. While Ryanair (RYAAY) had originally planned to carry 205 million passengers in 2024, it now anticipates ferrying 200 million.

According to O’Leary, Ryanair now buys “more aircraft from Boeing than any other airline anywhere in the world.” Last year, the carrier placed an order for 300 new Boeing 737-MAX-10 aircraft.

Last week, about 33,000 members of the International Association of Machinists and Aerospace Workers (IAM) voted 96% in favor of the strike. The rejected contract included a 25% raise over four years.

This strike adds to the already turbulent times at Boeing (BA) after such recent incidents as a much-publicized emergency exit blowout, the departure of the firm’s CEO and Senate hearings.

“I have no doubt that Boeing will fix this strike,” O’Leary said in the interview.” “It may take a number of weeks.”

O’Leary expects it will take Boeing (BA) two to three years to get back on track. “All of Boeing customers are suffering from delayed deliveries,” he added.