Ryanair Drops $33B Bombshell on Boeing Over Trump's Tariffs

Gurufocus ^ | May 1, 2025 | Khac Phu Nguyen

[Racketeer]

Ryanair (NASDAQ:RYAAY) just fired a warning shot and it landed squarely on Boeing's (NYSE:BA) front porch. CEO Michael O'Leary says the airline could cancel its jaw-dropping $33 billion order for 330 Boeing jets if U.S. tariffs start driving up prices. His message? If the aircraft get more expensive because of politics, Ryanair will walk. O'Leary made it clear in a letter to Congressman Raja Krishnamoorthi: Ryanair isn't in the business of paying for Washington's trade wars. And if Boeing loses its price edge? He's open to alternatives, even China's Comac.

[grey_whiskers]

Likely related to this:

https://x.com/MFA_China/status/1917074374227857743

[reed13k]

Yet another Irish signal that they’ve lost the luck...at least for now.

[dadgum]

Chinese aircraft are his solution???
That boy is stuck on stupid.
Or suicidal.

[Wayne07]

50% of the 737 is imported parts, so yes the tariffs will increase costs. Add whatever reciprocal tariffs there are in the country of delivery, and Boeing is dead abroad. They are popping champagne bottles at Airbus HQ.

[whitney69]

“...discount airline has going forward.”

Am I missing something? A low budget airline is threatening Boeing to cancel a contract for aircraft they need to stay in the air because of politicial purposes that has nothing to do with their bottom line while the aircraft do? <>!

wy69

[ridesthemiles]

DOES THE FAA HAVE TO CERTIFY CHINA PLANES????

[Svartalfiar]

American tariffs don’t raise the price of goods manufactured in the USA and sold abroad.

They do when most of the source materials and components aren't coming from America.

[dinodino]

He can go buy COMAC or Tupolev instead.

[Ex-Con777]

Actually it’s 30% imported parts, through the entire Boeing fleet of aircraft. They got burned by outsourcing too much for the 787. That led to a 2 year delay in certification.

Every part for the 737 can be manufactured inside the US. Boeing claims to save a little money by using foreign companies for some parts. How much of that outsourcing is done purely for monetary purposes isn’t known. Some of the outsourcing is done for political backscratching reasons also.

EC

[faucetman]

NONSENSE!

Jets take YEARS to get delivery. You just can’t go buy them elsewhere.

You certainly don’t want to lose your place in the cue.

Tell your gubmit and the EU to call Trump and MAKE A DEAL!

LOWER YOUR TARIFFS.

REMEMBER, you don’t have the cards, WE HOLD THE CARDS!

[Red Badger]

Hey, buy Chinese jets! You’ll be out of business in no time!.............

[Unassuaged]

Boeing has a good head start in that department, unfortunately!

[Flavious_Maximus]

If the CEO Michael O’Leary doesn’t like the prices he can blame the Irish government for the tariffs.

The days of Ireland sucking on the USA teat are over. Reciprocal tariffs are here to stay until the trade imbalances are evened out.

O’Leary can go ahead and buy the cheap Chinese airplanes, but don’t expect to land that junk on USA soil (without paying a huge landing fee).

Embrace the suck, EuroTrash! /spit

[af_vet_1981]

He's open to alternatives, even China's Comac.

LOL

[bwest]

The price of Airbus just went up...

[AnotherUnixGeek]

CEO Michael O'Leary says the airline could cancel its jaw-dropping $33 billion order for 330 Boeing jets if U.S. tariffs start driving up prices.

US tariffs would not raise the cost of Boeing jets - if anything they might raise the cost of Airbus jets for US airlines. Foreign tariffs on American products could raise the cost of Boeing jets for foreign buyers. This article doesn't make much sense.

[af_vet_1981]

Ryanair never had the best reputation to begin with. I would never select them as a transportation provider. Looks like they were replacing all the planes they poorly maintained over the years. And if they think they are better off with ChiCom crud They may as well retire and raise sheep.

Signed Former Boeing Flight test engineer.

Ireland will not require airplanes to transport the sheep to the EU market, unless one calls the tourists who use this airline by that moniker.

[z3n]

The airline will ‘walk’.

Sounds about right. heh

[Gary from Dayton]

I doubt the 50% figure, however you made good points.

Having Americans build 100% of the part makes more sense now.

[Wayne07]

Hard to get exact numbers, but the list is extensive and includes complex, advanced systems that will take years to reshore to the US.

Fly-by-Wire Systems (France — Thales)
Autopilot & Flight Computers (France — Thales, Sweden — Saab)
Hydraulic Actuators (Germany — Liebherr)
Wing Leading Edges (UK — Spirit AeroSystems Scotland)
Horizontal Stabilizers (Italy — Leonardo)
Turbofan core, nacelles, fuel system, Fan & Fan Case - France (Safran)
High-pressure compressors - Germany (MTU Aero Engines)
Germany (Liebherr): Actuation systems
Turbine components and engine alloys - Japan (IHI Corp)
Gearbox components - Italy(Avio Aero)
Sensors & monitoring systems - United Kingdom(Meggitt)
Engine health monitoring systems - Canada (L3Harris)
Structural components - South Korea (Hanwha Aerospace)
Winglets & Composites (Japan — Mitsubishi, South Korea — KAI)
Seats (Germany — Recaro)
Galleys & Lavatories (France — Safran Cabin)
Overhead Bins (Mexico — C&D Zodiac)
Power Management (Switzerland — ABB)
Circuit Breakers (Ireland — Eaton)