737MAX delays hurt Spanish airports as Ryanair cuts back

Premium Analysis

Unions representing Ryanair cabin crew and pilots in Spain have protested the planned closure of four Ryanair bases at Tenerife-Sur, Gran Canaria Las Palmas and Lanzarote in the Canary Islands, and Girona on the mainland (northeast of Barcelona).

The closures are expected to result in the loss of close to 520 jobs, including more than 120 pilots. Labour groups believe that the base closures are unjustified, with no reason given other than the grounding of the Boeing 737 MAX.

In Jul-2019 Ryanair reduced its planned summer 2020 capacity growth from 7% to 3% because of expected delays to its MAX delivery schedule. Consequently, it said, it would need to close/cut its fleet at some bases for summer 2020 and winter 2019/2020. Its Canary Islands bases are understood to be heavily loss-making in the winter.

Nevertheless, Spain is an important revenue source for Ryanair and is a very popular holiday destination for its customers.

Overall growth in this market is slowing, even reversing this winter, after strong expansion in 2013 to 2017, partly reflecting some market consolidation. Ryanair is the leading Spain-Europe airline, although it has lost some market share. Spain, including the four airports where bases are set to close, will remain important to Ryanair.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,494 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.