Ryanair to purchase 30 spare jet engines, with list price of $500m

Ryanair has agreed to purchase 30 new spare jet engines, with a list price of $500 million (€439 million), from a company called CFM. This will increase the Irish airline’s pool of spare engines to more than 120 and boost its operational resilience, the company said.

The company said the deal with CFM will involve fuel-efficient Leap-1B engines. They will be used to support Ryanair’s fleet of B737 Gamechanger aircraft and the B737 MAX-10 aircraft set for delivery in 2027.

Ryanair Holdings chief executive Michael O’Leary said the purchase was a “significant” commitment by the Irish airline.

“These latest technology CFM engines reduce fuel consumption and CO2 emissions per seat by up to 20 per cent when installed on our B737 MAX fleet, which will further widen Ryanair’s cost leadership over competitor airlines in Europe,” he said.

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Ryanair has a long-standing partnership with CFM, a joint venture between GE Aerospace and Safran Aircraft Engines.

“This new agreement is another milestone in the long and successful partnership we have built with Ryanair,” CFM chief executive Gael Meheust said. “We look forward to continuing to support Ryanair’s significant growth by providing them with industry-leading reliability and utilisation standards.”

Ryanair’s fleet currently comprises 620 aircraft in total, including more than 180 “game-changer” 737-8200 aircraft. It also has around 330 new Boeing 737s on order, with 29 Boeing 737 “game-changer” jets. The first deliveries of a newer model, the 737 Max 10, are due before summer 2027. The Max 10 has 20 per cent more seats and burns 20 per cent less fuel, outperforming other models.

Deliveries of new Boeing aircraft have been delayed due to issues impacting the American plane maker. The delays have also had an impact on its customers, with Ryanair saying in its most recent financial results that delays led to higher crewing ratios.

However, Ryanair previously said it hopes US authorities will certify the Max 10, the biggest aircraft in the 737 family, later this year. Ryanair also received several aircraft from Boeing this spring, days ahead of schedule.

The company said it plans to increase the 737 fleet to 800 as it targets traffic of 300 million passengers every year by 2034.

Ryanair’s shares rose to €24.50 after 12.30pm on Tuesday, above the €21 level that is needed to earn Mr O’Leary 10 million in share options. The options, priced at €11.12, will vest if Ryanair’s shares exceed €21 for 28 days between April 1st 2021 and March 31st 2028, or the airline’s profit after tax exceeds €2.2 billion in any year up to 2028.

In addition, Mr O’Leary must remain as chief executive until July 2028. He must exercise the options up to the following February.