Europe’s biggest budget carrier, Ryanair, has threatened it would postpone delivery of its new Boeing aircraft fleet amid rising US-Europe trade tensions. The budget airline, which expects to start getting 25 Boeing airplanes from August, said it was seriously worried about new tariffs on US-produced goods, including airplanes.
Ryanair CEO Michael O’Leary suggested that the deferment could be on the cards if the costs go up as a result of these ‘reciprocal’ tariffs. These were among a series of US retaliatory steps against trade imbalances, and Europe was set to incur a baseline global tariff of 10%, which could go up based on political talks. If they are passed on to airlines, these costs will hurt Ryanair’s lean budget model and fare structure.
Ryanair’s fleet growth strategy may be disrupted, especially when travel volumes skyrocket in Europe after the pandemic. The delay in deliveries could not only impact the airline’s summer 2025 schedule but also impede its overall growth and cost-saving ambitions. The airline previously relied on Boeing’s new models to aid its low-emission, high-capacity ambitions.
The warning highlights how geopolitical trade choices are starting to have a ripple effect into the aviation sector. Ryanair’s position might put pressure on both the US and European negotiators to solve the tariff problem prior to deliveries beginning, to prevent a ripple effect throughout the industry. Boeing has not commented yet on the possible delay or Ryanair’s warning.
