THE worldwide grounding of Boeing 737 Max 8 aircraft after two deadly crashes could cost the Irish low-cost carrier Ryanair €10million this year according to market analysts.
Lion Air Flight 610 crashed into the Java Sea in Indonesia on October 29, 2018 after taking off from Jakarta bound for Pangkal Pinang. All 189 people on board died.
Ethiopian Airlines Flight 302 crashed on the morning of March 10 after taking off from Addis Ababa on its way to Nairobi, Kenya, killing all 157 people on board.
Boeing says the new software update has been tested by most of the 737 Max customers and that nearly 100 test flights have been made.
Ryanair has the largest order book of Boeing 737 Max 8s and was due to begin taking delivery of the first 47 of up to 200 aircraft early this year.
But analysts have estimated that the worldwide grounding of the aircraft could add €10 million in costs to the airline this year if the planes don’t fly.
Goodbody is forecasting revenues of €7.6 billion at Ryanair for the year ended March 31 with earnings to come in around €1.89 billion, 18 per cent lower than a year ago.