Delays in Summer Air Travel Could Get Worse, Thanks to Supply Chain Shortages

Travelers can expect disruptions in their flights this summer. This time, the problem isn’t the airports or the airlines. The International Air Travel Association said supply chain shortages are the latest of the industry’s obstacles.

“Airlines have been directly impacted by aircraft parts supply chain ruptures which aircraft and engine manufacturers have failed to sort out,” said a press release from IATA during its annual meeting in Istanbul on Monday.

While demand for air travel is back up — 77% of passengers polled in a recent IATA survey say they expect to travel as much or more than they did before the pandemic — challenges on the supply side mean new planes are taking longer to get delivered, and planes already in service are delayed during their repair cycles. Most of the holdup is related to suppliers of engine parts.

″Airlines are beyond frustrated. A solution must be found,” said IATA Director General Walsh in his speech during the conference.

Boeing and Airbus are the industry's largest commercial aircraft providers. Boeing said they expect their supply constraints to continue.

"I think we'll still be constrained five years from now," said Boeing President and CEO David Calhoun last week at a conference.

Though revenues in the aviation industry have risen considerably, its slim 2.8% operating profit means any number of risk factors could unfavorably tip the balance between its costs and revenues in 2023. According to IATA, airlines will make an average profit of just $2.25 per passenger this year.

“So, the value retained by airlines for the average plane trip won’t even buy a subway ticket in NYC,” said Walsh.

Still, high demand, China’s lifting of COVID-19 restrictions and a slight reduction in jet fuel prices are reasons for industry optimism, he noted.