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Ryanair CEO expresses confidence in Boeing amidst US tariff concerns

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Ryanair CEO expresses confidence in Boeing amidst US tariff concerns
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Michael O'Leary Ryanair CEO | Official Website

Ryanair CEO Michael O'Leary expressed confidence that current tariff tensions between the US and its trading partners will not heavily impact commercial aircraft. This statement comes amidst global economic uncertainty due to US-imposed tariffs. O'Leary's remarks followed discussions with Boeing Commercial Airplanes CEO Stephanie Pope. He noted that "at the heart of the Trump agenda, we don't think there's much likelihood of tariffs on aircraft (but) couldn't rule it out."

After conversing with a top executive at Boeing, O'Leary indicated that he believes the US administration would continue to support Boeing. He voiced his opinion at a conference organized by the A4E European airline industry association.

Ryanair, being a major Boeing customer with an extensive fleet of Boeing 737 aircraft, has felt the impact of Boeing's recent delivery delays. Last year, O'Leary pointed out the reduced aircraft deliveries might lead Ryanair to carry fewer passengers than the projected 205 million, potentially impacting revenue by more than $500 million. Despite this, O'Leary is optimistic about the new leadership at Boeing, stating, "I think we are getting more confident that there's a good team of people now between (new Boeing CEO) Kelly Ortberg, (Commercial CEO) Stephanie Pope and the rest now running Boeing."

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However, delivery delays continue to challenge Ryanair's fleet growth plans, with an expected shortage of 30 planes this summer despite some advanced deliveries.

Amidst ongoing international tariff wars, many sectors remain watchful, including the aviation industry. Analysts suggest that Boeing could suffer more than Airbus from tariffs because of its reliance on international supply chains. Airbus appears to be more insulated due to its global manufacturing footprint, including plants in Alabama, Mississippi, and Florida, which could help it avoid some US tariffs.

With 25% tariffs on steel and aluminum, there are concerns about impacts on Boeing, given the materials' significance in airplane production. Despite agreeing that tariffs could increase costs, Boeing's CFO Brian West mentioned that the company might not feel immediate effects due to existing inventory purchased pre-tariff.

The situation, if unresolved, could impact Boeing's competitiveness, potentially benefiting Airbus.

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