Ryanair threatens to cancel huge Boeing order if Trump tariffs raise prices

Ryanair has threatened to cancel orders for hundreds of Boeing aircraft if a US-led tariff war leads to materially higher prices, and said it could look at alternative suppliers, including Chinese planemaker COMAC.

 

The threat by Europe’s largest low-cost carrier and one of Boeing’s biggest customers was the latest sign of a potential reordering of the global aerospace industry if US president Trump does not exempt the sector from his tariff plans.

But with COMAC not yet certified in Europe and Boeing’s main rival Airbus saying it is sold out through the rest of the decade, Ryanair may find it hard to follow through on its threat, one industry source said.

 

In a letter to a senior US lawmaker, Ryanair’s chief executive Michael O’Leary said Trump’s tariffs could threaten 330 Boeing 737 MAX aircraft that his airline has on order, which have a list price of more than $30 billion (€26.5 billion).

 

“If the US government proceeds with its ill-judged plan to impose tariffs, and if these tariffs materially affect the price of Boeing aircraft exports to Europe, then we would certainly reassess both our current Boeing orders, and the possibility of placing those orders elsewhere,” O’Leary said.

 

The letter, seen by Reuters, was a response to a warning by US Representative Raja Krishnamoorthi, a Democrat from Illinois, about the security implications of Ryanair following through on an earlier suggestion it might consider a COMAC order.

Ryanair, Europe’s largest budget airline, has issued a stern warning to Boeing, stating it may cancel a massive aircraft order if tariffs proposed under a potential second Trump administration significantly raise prices.

 

The airline, known for its aggressive cost-cutting measures, has expressed concern over the possible return of steep tariffs on European and U.S. trade, particularly in the aviation sector. These tariffs, which were part of the transatlantic trade tensions during Donald Trump’s first term, could return should he win the 2024 presidential election and follow through on his campaign promises.

 

Order at Risk

 

Ryanair’s CEO Michael O’Leary stated that the airline is reviewing a pending multi-billion-dollar deal for Boeing 737 MAX aircraft. “If tariffs inflate the cost of these jets, we’ll have no hesitation in walking away from the order,” O’Leary said during a press briefing in Dublin.

 

The airline has over 200 Boeing aircraft on order, part of a long-term strategy to expand its low-cost fleet across Europe and potentially into new markets. A significant portion of this order is scheduled for delivery over the next five years.

 

Political Uncertainty and Trade Policy

 

While Trump has not yet taken office and the future of trade policy remains uncertain, companies like Ryanair are preparing for the possibility of a more protectionist U.S. stance. Tariffs on aerospace parts or complete aircraft could disrupt Boeing’s pricing and production strategies, especially for international clients like Ryanair.

 

Industry analysts suggest that Ryanair’s move is also strategic. “This could be a negotiating tactic,” says aviation expert Laura Stevens. “Ryanair wants to pressure Boeing into securing price protections regardless of political changes.”

 

Boeing’s Response

 

Boeing has yet to officially comment on Ryanair’s warning. However, sources close to the company indicate that negotiations with Ryanair have become increasingly tense in recent weeks, as the airline pushes for more favorable pricing amid global economic uncertainty.

 

Impact on Aviation Industry

 

If Ryanair cancels the order, it would deal a blow to Boeing, which is still recovering from production setbacks and reputational damage over the past several years. It could also open the door for rival Airbus to win new contracts with Ryanair, despite the airline’s long-standing preference for Boeing’s 737 model.

 

Conclusion

 

As the world watches the political climate in the U.S. evolve, major international players like Ryanair are making it clear they won’t absorb the costs of geopolitical tension. Whether the threat materializes into a canceled deal remains to be seen, but it highlights the fragile relationship between global busi

ness and political decision-making.