Airlines Grapple with Jet Shortage Amid Delivery Delays

Airlines worldwide are heading into the peak summer travel season constrained by a shortage of aircraft, as Boeing and Airbus struggle to meet their original delivery schedules. EasyJet Chief Executive Kenton Jarvis told CNBC that while demand remains strong, with booking levels ahead of last year for both the third and fourth quarters, capacity growth is muted by delayed jet deliveries. He noted that the carrier expects only a 1 to 3 percent increase in available seats this summer, despite robust demand for vacations and holiday packages.

EasyJet reported a pre-tax loss of £394 million for the six months ending in March, widening from a £350 million loss in the same period last year. The airline remains confident that full-year profit forecasts are within reach, but investors reacted coolly, sending shares down about 4 percent on the day of the results. Jarvis emphasized that current booking trends for both scheduled flights and holiday packages suggest a strong rebound, but cautioned that capacity constraints driven by late aircraft handovers are the industry’s primary challenge.

Data from the European Travel Commission underscores Jarvis’s optimism, revealing that although overall travel intention dipped modestly for this summer, European travelers are planning longer stays and bigger budgets. Countries such as Poland, Britain, the Netherlands and Spain reported the highest intent to travel, buoyed by affordable fares and a desire for meaningful cultural experiences. ETC President Miguel Sanz highlighted that longer trips and increased spending signal a resilient market poised to outpace historical trends.

Industry experts say that Boeing’s production crisis, fueled by supply chain bottlenecks and factory retooling, has kept monthly deliveries well below targets. In April, Boeing delivered 45 jets—nearly double the previous year’s tally—while Airbus reported 56 jet handovers, an 8 percent year-on-year decline. Aviation analytics firm Cirium warns both manufacturers face “significant challenges” if they are to hit their 2025 delivery goals, potentially prolonging aircraft shortages for several seasons.

Ryanair CEO Michael O’Leary offered a silver lining, noting that Boeing deliveries have shown signs of improvement. He reported that five spring aircraft arrived a few days ahead of schedule and said declining oil prices will provide a “real tailwind” for airlines grappling with tight margins. O’Leary’s comments reflect a broader consensus that fuel cost reductions and controlled capacity growth could sustain profitability even as aircraft backlogs persist.

To mitigate delays, carriers are extending leases on older models, rearranging networks and forging partnerships to bolster capacity. EasyJet has leaned on its holiday division to optimize aircraft utilization, while low-cost and full-service airlines alike are exploring codeshare agreements and wet-lease arrangements. Some operators are also prioritizing high-yield routes, deploying available jets on transcontinental services and premium markets to maximize revenue per seat.

Despite the challenges, airlines are marketing improved schedules and novel products to attract travelers. Promotional campaigns emphasizing family-friendly fares, flexible booking and value-added services aim to reassure customers that flight options remain plentiful despite industry-wide shortages. Travel agents report that savvy consumers are booking early to secure preferred itineraries, underscoring the importance of capacity management in capturing summer demand.

As the aviation sector navigates this transitional phase, stakeholders agree that sustained investment in production capacity and streamlined delivery processes are essential. Boeing and Airbus have pledged to ramp up output, but carriers must continue agile network planning to accommodate available aircraft. With summer bookings solid and operational strategies in place, airlines aim to capitalize on resurgent travel while awaiting a return to normal delivery schedules that will ultimately enable more robust capacity growth in the years ahead.

Sources: AirGuide Business airguide.info, bing.com, cnbc.com