Irish low-cost airline Ryanair Holdings PLC (LSE:RYA) has confirmed an order for 300 new aircraft at a cost of US$40bn (£32bn), marking the largest acquisition to date for the Euronext Dublin-listed carrier.
Of the 300 Boeing 737 MAX 10s on order, 150 orders have been firmly secured.
Negotiations for the acquisition had been in progress prior to the onset of the Covid-19 pandemic, but were halted in September 2021 due to the inability of Ryanair and Boeing to reach a mutually agreeable pricing agreement.
“We expect these new, larger, more efficient, greener, aircraft to drive further unit cost savings, which will be passed on to passengers in lower airfares,” said chief executive Michael O'Leary.
He added: “The extra seats, lower fuel burn and more competitive aircraft pricing supported by our strong balance sheet, will widen the cost gap between Ryanair and competitor EU airlines for many years to come.”
The 228-seat Boeing 737 MAX 10 aircraft have 228 seats- 21% more than the currently used modified Boeing 737 Max 8’s.
More seats mean more potential revenue, but the new aircraft will also have a downside.
As O’Leary stated back in March: "If you want us to buy an aircraft with 30 extra seats that we have to fill six times a day, that's a lot of yield dilution. Therefore we need a much more competitive seat price if you want the extra 30 seats."
Delivery of the aircraft is expected between 2027 and 2033.
RyanAir shares added around 1.4% in light of the news.