Tuesday, 28 May 2024

Global aviation sector faces pressure amid a decline in aircraft production


Global aviation industry is facing pressure during the summer months, as travel demand is expected to exceed pre-pandemic levels, while aircraft deliveries decline sharply due to production problems at Boeing and Airbus.

According to Al-Anbaa, airlines are spending billions on repairs to continue operating older, less fuel-efficient aircraft and paying a premium to secure aircraft from lessors, but some airlines are still forced to reduce their flights to deal with the shortage of available aircraft.

At the same time, the number of travelers globally is expected to reach record levels, with 4.7 billion people expected to travel in 2024 compared to 4.5 billion in 2019.

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John Grant, chief analyst at travel data company OAG, said: We can expect strong performance from airlines throughout the summer with some rise in the cost of flying.

The International Air Transport Association (IATA) expected in December an annual growth of 9% in the capabilities of global airlines this year. This estimate seems optimistic in the wake of the safety crisis involving Boeing aircraft.

Martha Neubauer, a senior associate at Aerodynamic Advisory, said that carriers will receive about 19% fewer planes this year than they expected due to production problems at Boeing and Airbus.

Due to the shortage of new aircraft, the aircraft leasing market is booming. Data issued by Sirim Ascend Consultancy show that the cost of leasing new Airbus A320-200neo and Boeing 737-8 MAX aircraft reached $400,000 per month, which is the highest level since mid-2008.

John Heimlich, chief economist at Airlines for America, which represents major U.S. airlines, said airlines are spending 30% more on aircraft leases than before the pandemic.