Putting a price tag on 737 MAX grounding – Seeking Alpha

Ryanair (NASDAQ:RYAAY) is the latest airline to warn that profit this year would be dented by the global grounding of Boeing’s (NYSE:BA) 737 MAX.

The European discount carrier was due to receive its first MAX planes this spring, which would have provided more seats and greater fuel efficiency, but has now pushed off deliveries until at least this winter, assuming regulators clear the plane to fly before that.

Exact timeline? Ryanair currently expects the FAA to clear the MAX to resume flying around the end of June or in July, with Europe’s regulator to follow in late July or possibly August.

It will also carry around 1M fewer passengers this year because of the delayed MAX aircraft, which likely equates to about €37M in lost sales. “We will be looking for compensation from Boeing,” CFO Neil Sorahan said, without giving a figure.

TUI and Norwegian Air, currently Europe’s largest 737 MAX operators, have also signaled they expect Boeing to compensate them for the financial impact of the grounding.

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