Ryanair May Hit Pause on 737 MAX Over Trump’s Tariff Fallout

Ryanair, Europe’s largest low-cost airline, has issued a stark warning to Boeing: rising U.S. tariffs could force delays in 737 MAX deliveries.

In an interview with the Financial Times, Ryanair CEO Michael O’Leary stated that the airline may postpone accepting new aircraft if Trump-era trade policies drive up costs.

“If tariffs are imposed on those aircraft, there’s every likelihood we may delay the delivery,” O’Leary said.

Why Ryanair Could Delay Boeing Deliveries

Ryanair is set to receive 25 new Boeing 737 MAX jets starting August 2024, but O’Leary emphasized that the airline doesn’t urgently need them until early 2026. This flexibility allows Ryanair to push back deliveries if tariffs make the deal financially unfavorable.

The issue stems from Trump’s 10% import duty on aircraft and 25% tariffs on steel and aluminum—key materials in aircraft manufacturing. These policies, originally imposed during Trump’s presidency, are now causing turbulence in global aviation supply chains.

How Tariffs Impact Ryanair’s Expansion Strategy

Ryanair’s low-cost business model relies heavily on the fuel-efficient Boeing 737 MAX to expand across Europe while keeping operational expenses down. The airline has placed hundreds of orders to boost capacity and maintain dominance in budget travel—especially during peak seasons like summer.

However, with rising trade tensions and economic uncertainty, Ryanair sees delivery timing as a strategic financial lever. If tariffs inflate costs, delaying orders could protect profit margins.

Broader Market Reactions to Trade Tensions

The aviation industry isn’t alone in feeling the ripple effects:

• U.S. stocks saw a slight rebound after reports that tariffs on electronics might be postponed, but the S&P 500 remains down 8% YTD.
• Asian markets, including Japan’s Nikkei and South Korea’s Kospi, rallied on Trump’s promises to support automakers—despite new 25% tariffs on imported vehicles (excluding Mexico and Canada).
• Experts warn these tariffs could slash U.S. and Canadian auto sales by 1.8 million units this year.

Key Takeaways

• Ryanair may delay Boeing 737 MAX deliveries if tariffs increase costs.
• The airline doesn’t need the new planes until 2026, giving it flexibility.
• Trump’s 10% aircraft tariff and 25% steel/aluminum duties are disrupting aviation supply chains.
• Global markets remain volatile as trade policies reshape industries.