Global – Avia Solutions Group, the global aviation services group headquartered in Lithuania, has highlighted the ongoing impact of aircraft delivery delays on airline operations and profitability, in a new article by the Group’s Chairman.
- Aircraft manufactured delivered significantly less aircraft than forecast in 2024 with Boeing only delivering 348 jets and Airbus only 776.
- International Air Transport Association (IATA) projects over 4 billion passengers in 2025 – indicating that an expansion of seat capacity by airlines is required.
- “However, I have long believed both market forces and strategic shifts will mean a return to business as usual by the end of the decade. And, having visited Boeing recently to officially sign our order for 80 737 MAX, I’m even more confident in that prediction.“
- The delays are linked to pandemic-era workforce reductions, raw material shortages, and ongoing issues at engine manufacturers like Pratt & Whitney, which are grounding aircraft — Wizz Air expects around 40 aircraft to be grounded on average in 2025.
- Airlines are losing significant revenue due to these delays. A hypothetical airline waiting on 10 aircraft capable of $1 million monthly revenue could lose $60 million over six months.
- The high demand for narrowbodies — especially during peak seasons — and lack of available new deliveries has increased reliance on older aircraft and created a stronger market for wet lease capacity.
- Avia Solutions Group sees this as an opportunity for ACMI providers to step in and support airlines unable to secure aircraft through direct orders or finance leases.
Source: Gediminas Ziemelis (Avia Solutions Group)