Despite persistent supply chain problems causing delayed aircraft deliveries and a delay in the introduction of more fuel-efficient jets, the international airline trade association IATA announced on Tuesday that the airline industry would record profits next year.
The forecast coincides with Airbus, a jet manufacturer, cutting its 2025 delivery objective due to a quality problem with certain metal fuselage panels on its A320 aircraft.
In recent years, both of the top jet manufacturers in the world, Airbus and Boeing, have experienced delivery delays to their airline customers.
Airlines claim they are unable to reduce fuel costs while carrying more passengers without newer, more efficient aircraft.
However, IATA expressed optimism for the upcoming year, highlighting Europe in particular as it surpasses the United States to become the area with the highest net profit per passenger.
Europe surpasses the United States in terms of profitability.
“Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” stated Willie Walsh, director general of the International Air Transport Association, in a statement.
He went on to say that while a little decline in the price of jet fuel would offer some financial respite, the possibility of even higher profitability is being hampered by regulatory constraints, especially in Europe, as well as unpredictability related to international conflict, drone incursions, and GPS interference.
Walsh stated that despite persistent supply chain problems, confidence in Airbus has decreased while Boeing’s performance has improved.
Days after recalling 6,000 A320-series aircraft due to a software bug connected to cosmic radiation, the European aircraft manufacturer was forced to reduce delivery goals earlier this month when flaws appeared in some of its fuselage panels.
“I believe we are witnessing a change in which it is widely acknowledged that Boeing’s performance has greatly improved. People are much more confident that Boeing will fulfill its commitments, while we’re witnessing a decline in confidence in Airbus,” Walsh said.
“It’s disappointing for the industry, because we will have fewer new aircraft being delivered than was expected,” he stated.
Weeks after the A320 series, which includes the best-selling A321, overtook the recently problematic Boeing 737 MAX as the most-delivered passenger jet in history, Airbus lowered its objective by 4% and acknowledged that deliveries had already slowed in November.
But in the end, Walsh blamed engine manufacturers for impeding delivery, claiming that they were providing new and repaired engines significantly more slowly than mainframe manufacturers and that, in certain situations, this was pushing aircraft manufacturers like Airbus to postpone their schedules.
