7/16/2019, 8:35 AM (Source: TeleTrader)
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Ryanair lowers growth outlook on 737 Max hurdle

Ahead of an earnings call scheduled for Tuesday, Ryanair Holdings Plc reaffirmed committed to the Boeing Co.'s 737 Max aircraft but expressed belief the return of the model to flights faces more delays. The hurdle prompted by two deadly crashes led to the revision in the expected deliveries to 30 from 58 aircraft for the schedule for the next summer season and it revealed a cut to its growth rate projection to 3% from 7%. It translates to full-year traffic increase through March 2021 to 157 million from 162 million passengers.

The Irish budget airline said it expects to restore expansion "to normal levels" after that, in the summer season. It sees base cuts and closures at underperforming or loss-making bases in the upcoming winter schedule from November.

"Boeing is hoping that a certification package will be submitted to regulators by September with a return to service shortly thereafter. We believe it would be prudent to plan for that date to slip by some months, possibly as late as December. As Ryanair have ordered the Boeing Max 200s, which are a variant of the Max aircraft, these need to be separately certified" in the United States and Europe, chief executive Michael O'Leary said. He added the company hopes the first aircraft would be shipped in January or February.

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