Washington – Travel is back, China dismantles last remaining Covid-19 restrictionsone stark truth is beginning to emerge.
While airlines from United Airlines Holdings to Air India have ordered or are about to order jets, Boeing and Airbus are voicing their blockbuster deals.
But supply chain constraints mean that these aircraft probably won’t be delivered until years later. Jefferies LLC estimates that it currently has a backlog of 12,720 aircraft.
in short, skyhigh airfare What people have bitterly complained about over the past few months is here to stay, and things could get worse before they get better.
Ajay Awtaney, founder of frequent flyer website LiveFromALounge.com, said: “People were used to lowering fares during the pandemic, but China’s economic reopening will make things worse.” rice field. “Not only aircraft shortages but also other factors such as oil prices are at play.”
Ortani said that while one airline with cash in hand in certain jurisdictions might have the financial headroom to lower prices, it would trip other airlines and “in the long run, It is highly likely that this will lead to even higher fares.
Boeing and Airbus are giant aircraft manufacturers reveling in the duopoly of supplying airliners, with the most popular single-aisle models selling out by at least 2029.
Demand from airlines is further compounded as people take to the skies with vengeance once again and airlines look to refresh aging fleets. This is a supply chain challenge, from getting needed parts to labor shortages.
Airbus earlier this month dropped its goal to deliver 700 jetliners this year, citing supply chain problems, and soaring energy costs will hit especially hard for smaller, power-intensive producers such as foundries and forges. I warned you before.
According to Steve Udvar-Hazy, founder of Air Lease Corp and aviation legend, every jet delivered to one of the world’s largest landlords in the past two years has been delayed.
“Whether it’s a 737 Max, a 787, an A330 or an A350, we haven’t gotten one on time,” he said. “And the worst was the A321neo. There was a delay of up to six to seven months when comparing contract delivery months to actual deliveries. It’s a combination. Production workers can’t work from home, so that was a real problem.”
As Covid-19 disrupted travel and countries closed their borders, thousands of planes that airlines had stored in deserts around the world also contributed to shortages as demand never returned. It is
Hundreds of aircraft have not been returned to the fleet either because they have been unused for so long that they need extensive maintenance, or because airlines are planning to phase them out and will not return to the fleet again. That’s because I didn’t mind including it in my schedule.
The end result for the air masses is eye-popping fares, which are likely to rise further as business travel resumes and more people vacation abroad for the first time in years.
