Ryanair orders 300 Boeing MAX 10 jets worth up to $40B

Ryanair (NASDAQ:), one of Europe’s and the world’s largest low-cost airlines has officially placed an order for up to 300 of Boeing’s (NYSE:) 737 MAX 10 jets, bringing an end to years of negotiations between the two companies.

The deal, made up of 150 firm orders with options for another 150 jets, is worth up to $40 billion at current list prices, and serves as yet another boost to the planemaker’s efforts to restore the image and financial viability of its 737 MAX program, following two deadly crashes and over a year of grounding.

The new jets are set to be delivered between 2027 and 2033, and will pave the way for the low-cost carrier to nearly double its traffic from 168 million now, to 300M by March 2034.

“Ryanair is pleased to sign this record aircraft order for up to 300 MAX-10s with our aircraft partner Boeing. These new, fuel efficient, greener technology aircraft offer 21% more seats, burn 20% less fuel and are 50% quieter than our B737-NGs,” said Ryanair CEO Michael O’Leary, with his Boeing counterpart Dave Calhoun adding, “We are committed to delivering for Ryanair and helping Europe’s largest airline group achieve its goals by offering its customers the lowest fares in Europe.”

Ryanair also has an outstanding order for 737 MAX 200s, a smaller version of the jet, with nearly 100 unfilled slots, to be delivered thru 2025.

The deal has long been in the making with on and off negotiations since before the pandemic.

The transaction will be subject to shareholder approval at Ryanair’s AGM on September 14, 2023.

Shares of BA are gaining nearly 2% in pre-market following the announcement.