Airlines Voice Concerns Over Boeing’s Delivery Delays
Major airline companies have expressed their dissatisfaction with Boeing due to delays in aircraft deliveries, which could potentially lead to adjustments in their operational strategies. The CEO of Ryanair, Michael O’Leary, indicated that these delays are likely to result in a reevaluation of the airline’s traffic projections for the upcoming year. The unforeseen delays may compel airlines to alter their route offerings and continue utilizing older aircraft longer than anticipated.
Boeing’s Ongoing Challenges
Boeing is currently facing renewed criticism as it struggles to meet delivery timelines for its aircraft. Such setbacks have disrupted airlines’ operational plans, restricting their potential growth and necessitating the use of aging aircraft beyond the planned timeframe. In a statement to Reuters, Ryanair’s CEO, Michael O’Leary, mentioned that the airline might revise its traffic growth outlook for the next year, anticipating delivery delays.
Ryanair, recognized as Europe’s preeminent low-cost carrier by passenger numbers, exclusively relies on Boeing 737 aircraft. O’Leary stated, “The big issue for Ryanair is we’re due 30 aircraft in March, April, May, and June of next year, and how many of those will we get?”
Industry-Wide Impact
During an event hosted by an Irish think tank, Willie Walsh, the Director General of the International Air Transport Association (IATA), highlighted the frustration delivery delays cause for airline CEOs, emphasizing the significant impact on operations. Walsh’s remarks, as reported by The Guardian, also alluded to similar delays encountered with Airbus. The entire aviation sector has been affected by supply chain constraints involving labor and raw materials.
Boeing’s challenges are compounded by the recent strike action continuing over the past month. Additionally, heightened regulatory oversight following the January Alaska Airlines incident has further influenced the delivery schedules.
Specific Setbacks: The Boeing 777X Delays
Last Friday, Boeing revealed additional delays in the debut of its 777X jet, pushing the first delivery from 2025 to 2026. Originally slated for an earlier launch, the 777X aims to claim the title of the largest twin-engine jet, coupled with improved fuel efficiency compared to its predecessors.
Tim Clark, the President of Emirates, which ranks as the largest customer for the 777X, expressed his dissatisfaction with Boeing’s recurrent delays. He stated, “Emirates has had to make significant and highly expensive amendments to our fleet programs as a result of Boeing’s multiple contractual shortfalls, and we will be having a serious conversation with them over the next couple of months,” in a statement shared with Business Insider. With over 200 of these jets on order, Emirates’ strategy to modernize its aging fleet heavily depends on the timely arrival of the 777X.
Reactions from Other Industry Leaders
Carsten Spohr, the CEO of Lufthansa, shared a sense of bewilderment at the continuing delays, marking it as unprecedented in the aviation sector. Speaking at the Airlines for Europe conference, Spohr remarked, “I’ve never seen anything like it in our industry, to be honest. I have been around 30 years,” as reported by the Financial Times. Lufthansa also stands to benefit significantly from the new 777X jet due to its scarcity of older 777s in its current fleet.
The postponement of new aircraft could lead to increased ticket prices for passengers. With fewer aircraft available, airlines may have to absorb additional costs related to fuel consumption as older planes remain in service longer.
Boeing has yet to provide a response to Business Insider’s request for comments regarding the matter.