Airlines struggle with lack of planes as summer travel set to hit record levels

Global airline industry faces summer squeeze with high travel demand, aircraft delivery issues, and rising costs impacting profitability.

The global airline industry is facing a summer squeeze, with travel demand expected to surpass pre-pandemic levels while aircraft deliveries have dropped due to production problems at Boeing and Airbus.

Air carriers are spending billions on repairs to keep flying older, less fuel-efficient jets, and paying a premium to secure aircraft from lessors. However, some carriers are trimming their schedules to cope with the lack of available planes. At the same time, the number of travellers globally is set to hit historic levels, with 4.7 billion people expected to travel in 2024 compared with 4.5 billion in 2019.

"We can expect a strong performance from airlines throughout the summer with some particularly high airfare," said John Grant, senior analyst at travel data firm OAG.

Last December, the International Air Transport Association (IATA) predicted a 9% annual growth in global airline capacity this year. That estimate looks optimistic following Boeing's safety crisis.

Passenger carriers will receive 19% fewer aircraft this year than expected because of production issues at Boeing and Airbus, said Martha Neubauer, senior associate at AeroDynamic Advisory.

U.S. carriers will receive 32% fewer aircraft than planned a year ago because several airlines depend on Boeing's 737 MAX planes, Ms. Neubauer said. Boeing's production has been curbed after a January mid-air panel blowout.

The company is reeling from a sprawling crisis that erupted after the Jan. 5 Alaska Airlines blowout. Regulators have put a cap on the production of the 737 MAX, but the company is not hitting even that level.