Boeing CEO Expects Supply Chain Challenges to Continue Until 2024

Boeing’s Chief Executive Officer, Dave Calhoun, has projected that the aviation industry will continue to face supply chain issues until the end of 2024. Speaking at the Qatar Economic Forum, Calhoun emphasized the need for stability and resolution of supply chain problems faced by Boeing and its competitor Airbus.

Calhoun stated that resolving these issues would not be a short-term task and estimated that it could take the entirety of this year and the following year to address them. This projection aligns with comments made by Airbus CEO Guillaume Faury, who suggested that production levels would not return to pre-pandemic levels until the end of 2024 or even 2025.

Despite the challenges faced by the aviation industry, Calhoun expressed confidence that recent manufacturing problems with the popular 737 narrow-body jet would not significantly impact production schedules, delaying them by only about a month or a month and a half.

Looking ahead, Calhoun mentioned that the industry is unlikely to introduce new jet designs until the mid-2030s due to various constraints, such as propulsion and wing design. However, Qatar Airways CEO Akbar Al Baker urged Boeing, Airbus, and Embraer to proactively explore new innovations instead of waiting for each other to trigger the next wave of advancements.

Boeing’s plans for a new mid-market plane, initially intended to replace the out-of-production 757, were canceled in 2020, prompting a call for a fresh approach. Engine makers also anticipate that significant advancements in fuel efficiency and emissions reduction, substantial enough to warrant groundbreaking plane designs, are unlikely to occur until the next decade.

As the aviation industry continues to navigate supply chain challenges, stakeholders are focused on resolving these issues to ensure stability and meet the demands of a recovering market.