Ryanair rumoured to be close to deal to buy 100 Boeing aircraft

Just as Ryanair is due to begin taking delivery of the first of the 180 Boeing 737 aircraft it ordered from the US manufacturer last year, reports emerge that it is on the verge of closing another deal for a further 100 aircraft, with a catalogue value of about €10 billion.

The airline yesterday refused to either confirm or deny that it is in talks with Boeing to acquire high-density versions of its 737 Max jetliner, saying it does not comment on speculation or rumour.

On the face of it, if Ryanair decides it needs aircraft, it has to go to Boeing. The Seattle-based group supplied the Irish airline’s existing fleet, which is made up exclusively of Boeing 737-800s.

All craft have 189 seats, giving it the highest seat density of its peer group. Interestingly, in an extensive note issued this week, Barclays analysts Oliver Sleath and Rishika Savjani pointed out that this and its standardised fleet help give Ryanair an edge over rivals such as EasyJet and Vueling when it comes to fuel efficiency. Simply put, it burns less kerosene per seat per hour than any of its rivals, helping to keep down the cost of flying passengers. It also helps with other expenses such as maintenance and training.

On that basis Boeing craft are central to its business model.

The craft it is reportedly negotiating to buy will have 200 seats, something the airline wants as it gives it the scope to sell more tickets, while, presumably, holding on to the savings and efficiencies that come with the current-model craft.

Ryanair’s load factor – the proportion of seats that it sells – broke the 90 per cent mark in July and August, meaning that on average it sold more than 175 of the seats on each of its craft during those months.

That number was high, even by Ryanair’s standards, and sparked an enthusiastic response from the markets. Yesterday’s reports that the airline is planning to add even more capacity left that enthusiasm undimmed.