By Dhirendra Tripathi
Investing.com – Boeing stock (NYSE:BA) traded lower by 0.4% in Tuesday’s premarket after European budget airline Ryanair ended talks for a major order.
Ryanair (LON:RYA) stock, which had risen on the news on Monday, traded 0.1% higher in London.
Ryanair said on Monday it had failed to agree a price with Boeing for a large follow-on order for the single-aisle 737 MAX 10 aircraft. It has previously been one of the model's biggest buyers.
“We have a disciplined track record of not paying high prices for aircraft,” Ryanair’s Michael O’Leary said in a note.
The airline said that without the new MAX 10, it still has “more than sufficient order pipeline” to grow its fleet to more than 600 and cover its five-year expansion plan. This includes taking delivery of over 200 B737 aircraft through 2025.
Ryanair’s statement came as a surprise since airlines don’t usually publicly announce walking off talks over potential deals with vendors. It also surprised by naming other airlines, Delta and Jet2, who have recently called off talks with the American company.
“We do not share Boeing’s optimistic pricing outlook, although this may explain why in recent weeks other large Boeing customers such as Delta and Jet2, have been placing new orders with Airbus, rather than Boeing,” the Ryanair note said.