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Bloomberg
Ryanair Holdings Plc cut its traffic outlook by 1 million passengers and said it will close two bases next summer as the grounding of Boeing Co.’s 737 Max jetliner further frustrates expansion plans.
Europe’s biggest low-cost airline now expects to attract 156 million customers next fiscal year, based on it getting 10 Max aircraft for summer 2020, or half the number previously projected. The shortfall will necessitate the closure of hubs in Nuremberg, Germany, and at Stockholm Skavsta airport, it said.
Dublin-based Ryanair had originally planned to take 58 Max planes for summer 2020 before paring the estimate to no more than 30 in July and 20 last month.
Ryanair is reining in growth as the Max remains grounded after two fatal crashes. While Boeing aims to get the model flying again this year, the Irish company is due to be the debut operator of a high-capacity version requiring additional certification even when the baseline plane has made its return.
Dublin-based Ryanair had originally planned to take 58 Max planes for summer 2020 before paring the estimate to no more than 30 in July and 20 last month. The carrier is also cutting pilot and cabin-crew jobs and shuttering or shrinking some bases as the 737 issue adds to a faltering European demand environment.
The carrier’s Skavsta base is currently home to four aircraft, while Nuremberg has two. Summer capacity will also be reduced at some other existing bases, though these will represent “minor reductions.†it said.
Shares of Ryanair traded 2.2% higher at 13.90 euros as of 1:28 p.m. in the Irish capital. The stock has gained 29% this year.