By Tim Hepher
NEW DELHI () – The leader of an international airline organization stated on Monday that increasing trade obstacles could harm both the economy and the aviation industry. They also mentioned that “unacceptable” aircraft delivery delays were hindering expansion efforts during a period when passenger numbers have reached all-time highs.
The International Air Transport Association (IATA) reduced their main prediction for overall profit in the airline industry by 2025, citing trade disputes and weakening consumer trust as reasons.
“As with every form of connection, air travel contributes to global prosperity,” stated Willie Walsh, the Director General of IATA, during their yearly gathering in New Delhi.
“This contrasts with isolationist policies, trade barriers, and the disintegration of the multilateral rule-based order. Such measures diminish prosperity and reduce living standards. Given our current circumstances, this serves as a crucial message,” he stated.
The broad tariffs introduced by U.S. President Donald Trump have ignited concerns about an economic downturn and restricted extra spending, leading numerous American consumers to postpone or reduce their travel arrangements.
They also endanger a longstanding agreement among over 30 nations to remove tariffs on aircraft and their components.
Although Walsh stated that there were no signs suggesting aircraft costs had gone up because of tariffs, he mentioned that airlines would strongly oppose any efforts by aviation producers to hike prices. He also urged governments to “keep aerospace away from trade disputes.”
The IATA encompasses around 300 airlines that make up over 80% of worldwide air traffic.
Regarding environmental sustainability, Walsh stated that advancements were lagging behind expectations at present. He faulted energy companies for failing to generate sufficient quantities of sustainable aviation fuel (SAF). This type of fuel, derived from waste oils and organic materials, comes with a higher price tag compared to traditional jet fuels.
The IATA has progressively been cautioning that airlines may find it challenging to achieve their environmental targets; however, Walsh stated that the aviation sector remains committed to attaining net-zero emissions by 2050, primarily through a steady transition to SAF.
DELIVERY DELAYS
Despite more individuals taking flights now compared to pre-pandemic levels as the passenger market recovers, airlines face challenges due to prolonged aircraft delivery delays and supply chain issues, which increase maintenance and repair times.
Walsh described the forecasts of aircraft delivery delays extending through this decade as “unacceptably off the charts.” He mentioned that the airline sector was exploring potential legal actions due to these delays; however, they favored addressing the issue cooperatively with manufacturers.
“The manufacturing industry is performing very poorly,” he stated.
The IATA reported that the anticipated deliveries for 2025 were down by 26% compared to last year’s projections. However, with an expected total of 1,692 new aircrafts, it still marks the highest count since 2018.
IATA stated in an updated industry outlook that further decreases are anticipated, as supply chain problems are projected to continue through 2025 and potentially until the end of the decade.
Tim Clark, who leads the globe’s biggest international carrier, Dubai-based Emirates, stated on Sunday that he believes using the pandemic as justification for delayed deliveries is no longer valid. He urged aircraft manufacturers to assume accountability for this issue.
A similar complaint was expressed by the Saudi low-cost airline flyadeal.
“Increased delays have become unacceptable. To be honest, transparency is insufficient, and we are growing restless. How are we supposed to make plans? It has simply gone past being a laughing matter,” stated flyadeal CEO Steven Greenway to .
The U.S.-based aircraft manufacturer Boeing is working to stabilize and increase production following a quality issue and a labor strike that hindered output earlier this year.
Last week, reports indicated that Europe’s Airbus has been cautioning airlines about facing an additional three-year delay in deliveries.
Even with the difficulties, airlines continue to seek additional aircraft to guarantee their ability to handle upcoming travel demands.
Air India, part of the Tata Group, is currently negotiating with both Airbus and Boeing for a significant new aircraft purchase, which would include approximately 200 additional single-aisle jets. This move aims to bolster an enormous agreement made in 2023 as the previously government-run airline continues its extensive billion-dollar transformation, according to reports from Sunday.
(Reported by Tim Hepher in New Delhi; Written by Lisa Barrington; Edited by Jamie Freed)
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