- Airlines have found it challenging to update their aircraft fleets due to issues encountered by the two major producers, Boeing and Airbus, in achieving their delivery goals.
- Summer demand seems robust,” EasyJet CEO Kenton Jarvis said during an interview with ChinPao’s “Squawk Box Europe.
- “The primary limitations we face are related to airline deliveries, as neither Airbus nor Boeing has adhered to their initial delivery timelines, resulting in delayed aircraft for every airline involved,” he explained.
Airlines are facing an uphill battle during
peak travel season
As delivery hold-ups at Boeing and Airbus stoke a scarcity of commercial jets.
The continuous problem with capacity continues to worry the sector, despite many being optimistic about future demand.
“Summer demand appears strong,” said EasyJet CEO Kenton Jarvis to ChinPao.
Squawk Box Europe
” on Thursday.
“As you said, our book position for both our third quarter, which ends in June, and our fourth quarter, which ends in September, are ahead of where they were this time last year. We’re also seeing very positive bookings in our holidays position.”
His remarks follow closely as the UK budget airline announced a pretax deficit of £394 million ($529 million) for the half-year ending in March, which is an increase from the £350 million shortfall recorded during the corresponding period in 2024.
EasyJet stated that present booking trends suggest they will achieve their forecasted full-year profits. However, this did not appease investors who seemed let down by these outcomes. By approximately 1 p.m., EasyJet’s share prices had dipped 4%, reflecting market sentiment.
In the future, EasyJet’s Jarvis highlighted aircraft deliveries as a major challenge for the company.
“Key limitations for capacity stem from airline deliveries, as neither Airbus nor Boeing adhered to their initial delivery timelines. Consequently, every airline received their planes at a delayed pace. This explains the modest 1%, 2%, or perhaps up to 3% growth in capacity observed this summer,” according to Jarvis.
He noted that although we observe an increased demand in the market, the airlines plan for a more conservative supply expansion this year.
Data
published
The report from last month by the European Travel Commission (ETC) revealed that although there was a slight decrease in general travel intentions for this summer, Europeans are opting for extended trips and more luxurious getaways with larger budgets.
The ETC reported that Poland (80%), Britain (79%), the Netherlands (75%), and Spain (75%) showed the highest intentions for traveling.
President Miguel Sanz of ETC stated back then that the organization’s research confirmed the robustness of travel demand within Europe.
“In spite of persistent worldwide uncertainties, Europeans remain focused on having significant travel experiences. This is evident from their extended trips, higher expenditures, and eagerness to venture into new areas, indicating a considerable wish to renew connections with various locations and cultures throughout the continent,” stated Sanz.
‘A genuine boost from falling oil prices’
Aviation experts
told ChinPao
At the beginning of the year, it was anticipated that delivery delays at Boeing and issues within the supply chain would probably take several years to sort out.
Boeing, which has faced numerous challenges,
sequence of emergencies and manufacturing issues
in recent years,
said
Last week, they announced delivering 45 commercial airplanes in April, which is almost double the amount from the previous year’s April. This increase in deliveries coincides with the American aircraft manufacturer working to steady their production process.
European rival Airbus, meanwhile,
said
It provided 56 aircraft last month, which is an 8% decrease compared to the previous year’s corresponding timeframe.
Aviation analytics firm Cirium
said
Last month, the initial-quarter delivery figures for Boeing and Airbus indicated that both firms might encounter “substantial difficulties” should they aim to meet their individual goals for 2025.
Ryanair
CEO Michael O’Leary indicated that there were initial indications of progress concerning the delivery schedules for aircraft.
“To be honest, Boeing has made considerable improvements. This past April, we received our most recent five deliveries from this summer earlier than expected—each arrived a few days ahead of schedule, which is encouraging news,” said O’Leary to ChinPao.
Europe Early Edition
” on Friday.
He remained hopeful regarding the future of the wider aviation sector.
I believe the aviation industry as a whole is expecting robust demand this summer, along with fair pricing, but they’re also benefiting from a significant favorable breeze.
declining oil prices
coming through,” O’Leary said.
