Boeing shares rally as Ryanair orders more 737 MAX aircraft

Ryanair has agreed to buy an additional 75 new MAX-8200 aircraft from Boeing, taking the total number of aircraft ordered to 210 from 135.

The budget airline sad on Thursday that the total value of the deal is more than $22bn. Now that the Boeing MAX aircraft has been certified by the US Federal Aviation Administration to return to service, Ryanair expects to take the first deliveries of the aircraft from early next year.

Boeing shares surged on the news and by 1510 GMT, were trading up 8.4% at $236.20.

Ryanair said it will use these new aircraft to grow its low fare services into new EU countries and markets, "which will incentivise Europe’s consumers and its travel industry to recover from the Covid-19 pandemic, as quickly as multiple vaccines are rolled out in 2021, and life returns to normal".

Ryanair chief executive Michael O’Leary said: "We are pleased and proud to place this enlarged order with Boeing, who have successfully completed the return to service of the Boeing MAX aircraft.

"The Boeing MAX is a fabulous aircraft with more seats, more leg room, lower fares, lower fuel consumption, and it sets incredible environmental standards, including 40% less noise and lower CO2 emissions."

Boeing’s president and CEO Dave Calhoun said: "We are gratified that Ryanair is once again placing its confidence in the Boeing 737 family and building their future fleet with this enlarged firm order.

"Boeing remains focused on safely returning the full 737 fleet to service and on delivering the backlog of airplanes to Ryanair and our other customers in the new year. We firmly believe in this airplane and we will continue the work to re-earn the trust of all of our customers."

The Boeing 737 MAX was grounded in March last year after two crashes that killed 346 people - Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019.