Boeing’s recent production setbacks have set off alarm bells in the airline industry, revealing a scenario where passengers could face increase in air fares and less availability of alternatives. The delay directly impacts big airlines like United Airlines Southwest AirlinesComplicating its fleet expansion and renewal plans.
With nearly 4,800 orders pending for Boeing’s 737 Max, including significant orders from American Airlines, Delta, Ryanair and the aforementioned Southwest and United, the aeronautics giant’s supply chain is under pressure, leading to a scenario of aircraft shortage. Available for summer 2024 in the United States.
Henry HarteveldtWith Airline Industry Analyst Environment Research Groupshared his perspective with cbs moneywatchNoting that “it’s not that airlines will have to cut flights – it’s that they won’t be able to add as many new flights as they had planned for the summer.”
The expert highlighted the double harm nature of this situation, affecting both consumers due to a lack of choices, and airlines limiting their ability to generate income through offering additional flights.
Travel demand is high during the summer season, which is affected not only by delivery delays but also by rising fuel costs, causing rates to rise.
robert mannOf R.W. Mann & CompanyA consultancy firm in the airline industry told CBS The production problems “have thrown airline business and capacity plans into disarray in the second half of the year.” In particular, the most affected will be Southwest, whose fleet consists of a particularly large number of aircraft. boeing 737 max,
According to February data, airline ticket prices have already seen an increase of almost 6% Airline Reporting Corporation, In this regard, Mann estimates that costs could increase by as much as 10% in some scenarios, resulting in a significant increase for consumers, especially those planning family trips.
Despite the gloomy outlook, the expansion of low-cost airlines, e.g. Air, Soul And CoveringCould provide partial relief to passengers, inject a competitive dynamic that helps balance rates in the market.
This complex scenario highlights the interconnectedness between aeronautical production and the consumer’s flying experience, where delays in the delivery of new aircraft can not only limit the expansion of air supply, but also significantly increase costs for passengers, Thus in this process the travel plans of many people get changed. ,
During this, boeing Hurricane continues to face a lot of criticism following a number of incidents where its aircraft have concerned customers due to lack of safety and reports of malfunctions.
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