- Airlines have found it challenging to update their fleets due to issues encountered by the two major producers, Boeing and Airbus, in achieving their delivery goals.
- Summer demand seems promising,” said EasyJet CEO Kenton Jarvis in an interview with ‘s “Squawk Box Europe.
- He further explained that the primary limitations stem from airline deliveries, as neither Airbus nor Boeing have adhered to their initial delivery timelines, resulting in delayed aircraft receipt for every airline.
Airlines are grappling with a challenging situation during this period.
peak travel season
As delivery holdups at Boeing and Airbus exacerbate a scarcity of commercial jets.
The continuous capacity problem persists as a source of worry for the sector despite many being optimistic about future demand.
“Summer demand seems promising,” EasyJet CEO Kenton Jarvis told ‘.
Squawk Box Europe
” on Thursday.
Just as you mentioned, our book positions for the third quarter ending in June and the fourth quarter ending in September are ahead compared to where we stood at this same point last year. Additionally, we are experiencing quite encouraging booking numbers for our holiday season.
His remarks follow closely as the UK budget airline announced a pretax deficit of £394 million ($529 million) for the half-year ending in March, which is an increase from the £350 million shortfall recorded during the corresponding interval in 2024.
EasyJet stated that present booking trends suggest they will achieve their full-year profitability targets. However, this did not appease investors who seemed let down by the outcomes. By approximately 1 p.m., shares of the airline had dipped 4%.
In the future, EasyJet’s Jarvis identified aircraft deliveries as a major challenge for the company.
“Capacity limitations primarily stem from issues related to airline deliveries, as neither Airbus nor Boeing adhered to their initial delivery timelines, resulting in delayed aircraft for every airline. This explains why our capacity growth will be limited to roughly 1%, 2%, or at most 3% over the coming summer season,” explained Jarvis.
He noted that we observe higher demand in the market, whereas the airlines plan to keep their supply somewhat limited this year.
Data
published
Last month’s report from the European Travel Commission (ETC) revealed that although there was a slight decrease in general travel intentions for this summer, Europeans are opting for extended trips with bigger spending plans.
The ETC reported that Poland (80%), Britain (79%), the Netherlands (75%), and Spain (75%) showed the highest intentions for traveling.
President Miguel Sanz of ETC stated back then that the organization’s discoveries confirmed the robustness of the travel demand within Europe.
“In spite of persistent worldwide uncertainties, Europeans remain focused on having significant travel experiences. This is evident from their extended trips, higher expenditures, and eagerness to venture into new areas, reflecting a pronounced wish to engage more deeply with various locations and cultural aspects throughout Europe,” stated Sanz.
‘A genuine boost from falling oil prices’
Aviation experts
told
At the beginning of the year, it was anticipated that delivery delays at Boeing along with supply chain issues would likely persist for several years to address.
Boeing, which has faced numerous challenges,
sequence of emergencies and manufacturing issues
in recent years,
said
Last week, they announced delivering 45 commercial airplanes in April, which is almost double the amount from the previous year’s April. This increase in deliveries occurs as the American aircraft manufacturer works to steady its production processes.
European rival Airbus, meanwhile,
said
It provided 56 aircraft last month, which represents an 8% decrease compared to the previous year’s corresponding timeframe.
Aviation analytics firm Cirium
said
Last month, the initial-quarter delivery figures for Boeing and Airbus indicated that both firms might encounter “substantial difficulties” should they aim to meet their individual goals set for 2025.
Ryanair
CEO Michael O’Leary indicated that initial indications of progress have emerged concerning the delivery schedules for aircraft.
“To be honest, Boeing has made considerable improvements. This past summer, we received our last five deliveries in April instead of the expected time, with each aircraft arriving a few days ahead of schedule, which is encouraging news,” O’Leary shared with ‘.
Europe Early Edition
” on Friday.
He remained hopeful regarding the future of the wider aviation sector.
I believe the overall aviation industry for this summer season anticipates robust demand, fair pricing, yet benefits from a significant favorable breeze.
declining oil prices
coming through,” O’Leary said.
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