Boeing Co’s disastrous start to 2024 is spilling over to airlines and their passengers as production delays at the US planemaker exacerbate an already nascent shortage of single-aisle jets that form the backbone of commercial air travel.
United Airlines Holdings Inc, Southwest Airlines Co, and Ryanair Holdings Plc are among the companies scrambling to respond to reduced deliveries from Boeing as the planemaker focuses on fixing quality lapses exposed by the Jan 5 accident on an Alaska Airlines flight.
With the busy summer travel season in view, carriers say they’re trimming schedules and looking for alternatives to 737s they’ve already ordered, while also contending with issues afflicting narrowbodies from Airbus SE.
Even Boeing seems uncertain when the planes will be ready as an army of US inspectors sift through its factories, meaning the company can’t make any firm predictions when things might return to normal.
All they’re saying is as you’d expect: ‘We are working as hard as we can. We are sorry for your disruption. We’re doing the best we can,’ said John Plueger, chief executive officer of aircraft leasing company Air Lease Corp.
‘As soon as we have certainty, we will advise you.’ They are saying that.
Airbus, Boeing’s main competitor, is largely sold out through the end of this decade, so there isn’t an obvious place for airlines to turn. Like Boeing, the European planemaker has been struggling to raise production back to pre-pandemic rates.
A separate engine-wear issue has grounded hundreds of Airbus planes, further denting aircraft availability at a time when demand from airlines is particularly hot. Boeing said in a comment that the company is squarely focused on implementing changes to strengthen quality across our production system and taking the necessary time to deliver high quality airplanes that meet all regulatory requirements.
We continue to stay in close contact with our valued customers about these issues and our actions to address them.
This is not just a this-year problem. This has been a multiyear issue, Steven Townend, who heads aircraft lessor BOC Aviation Ltd, said.
It is going to take several years to catch back up again.
For passengers, this will mean fewer flight options and potentially higher prices on at least some popular routes.
The shortages chiefly affect single-aisle workhorses like the Boeing 737 and Airbus A320-family jets that fly short to mid-range distances and make up the bulk of the global fleet.
As a result, domestic and regional flights are seeing more of an impact than longer-distance journeys.
Airlines haven’t added seats between New York and Los Angeles quickly enough to match demand, according to Amex Global Business Travel.
The agency projects business-class fares will rise as much as 8.5% on the busy coast-to-coast route during the peak summer season.
Between Seattle and San Francisco, prices in both business and economy are forecast to surge as much as 18% during the first half of the year, according to Amex GBT, while fares between Chicago and Las Vegas may rise by 9.6%. The broader outlook for ticket prices is less definitive.
US fares skyrocketed in 2022 and early 2023 when travelers stormed back to the skies but then fell back through most of last year as domestic demand weakened.
The latest US government data shows fares rose 3.6% between January and February, the biggest monthly increase since May 2022.
You’ll see fewer flights and more full aircraft during summer, said Air Lease’s Plueger. It will probably mean higher fares.
