2024-04-23 14:40:00 ET
Summary
- The airline industry is facing a significant challenge that could impact travelers' wallets in the coming years: a shortage of commercial aircraft.
- Due to manufacturing issues at Boeing, including the grounding of the 737 Max and production slowdowns from COVID-19, approximately 2,700 new planes that were expected to be built over the last five years never materialized.
- Supply crunch is happening at the same time that demand for flights has largely recovered to pre-pandemic levels in most markets outside of China.
By Sorin Roibu, CFA
The airline industry is facing a significant challenge that could impact travelers' wallets in the coming years: a shortage of commercial aircraft. Due to manufacturing issues at Boeing ( BA ), including the grounding of the 737 Max and production slowdowns from COVID-19, approximately 2,700 new planes that were expected to be built over the last five years never materialized (see Exhibit 1). This supply crunch is happening at the same time that demand for flights has largely recovered to pre-pandemic levels in most markets outside of China. 1,2 ...
Read the full article on Seeking Alpha
For further details see:
A Shortage Of Planes: Higher Prices For Travelers And Certain Stocks