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Ryanair Expects Boeing MAX Delivery Delays To Slow Capacity Growth

Irish low-cost airline Ryanair Holdings (RYA.L) Tuesday said it expects Boeing 737 MAX delivery delays to slow capacity growth for winter 2019 and summer 2020.

In its update to investors on the current uncertainty over the 737 MAX deliveries, Ryanair CEO Michael O'Leary said the exact date of the aircraft's return remains uncertain. Despite this, the company remains committed to the B737 MAX aircraft, and now expects that it will return to flying service before the end of 2019.

According to the company, Boeing is likely to submit a certification package to regulators by September with a return to service shortly thereafter.

Ryanair expects that the MAX200 will be approved for flight services within 2 months of the MAX return to service.

The company said it expects to receive its first MAX200 aircraft sometime between January and February 2020. Ryanair noted that it can only take delivery of between 6 to 8 new aircraft each month.

Due to this, the company is planning summer 2020 schedules based on taking up to 30 B737 MAX aircraft deliveries up to end of May 2020, down from the 58 MAX aircraft Boeing originally scheduled to deliver.

Ryanair expects a cut in summer 2020 growth rate to 3 percent from 7 percent. The company expects full year traffic growth for the year to March 2021 will be cut to approximately 157 million guests from 162 million guests.

The company said it is initiating talks with its airports to find out underperforming or loss making bases that should suffer these short term cuts and/or closures from November 2019.

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