Tuesday, November 5, 2024

Boeing and its production problems could raise flight prices during the summer in the United States

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Summer travel could be affected by restrictions on flight supply and the resulting increase in ticket prices (Reuters/Randall Hill)

Boeing's recent production setbacks have raised alarm bells in the airline industry, suggesting a scenario in which travelers could face a crisis. Increase in flight prices Lack of options. The delays directly affect major airlines such as United Airlines and Southwest AirlinesThis complicates plans to expand and renew the fleet.

With nearly 4,800 pending orders for Boeing 737 MAX aircraft, including large orders from American Airlines, Delta, Ryanair and the aforementioned Southwest and United, the aviation giant's supply chain is under pressure, portending a scenario of aircraft shortages available for the summer of 2024 in the United States. United. United State.

Henry HarteveldtAviation industry analyst with Atmospheric Research GroupShare your vision with CBS MoneyWatchPointing out, “This does not mean that airlines will have to reduce their flights – rather, they will not be able to add a large number of new flights as they planned for the summer.”

The specialist pointed out the double-loss nature of this situation, which affects consumers, due to reducing options, and airlines, which limits their ability to generate income by offering additional flights.

The summer season, characterized by high demand for travel, is marred not only by delays in deliveries but also by high fuel costs, further increasing prices.

Robert Mannl R.W. Mann & CompanyA consulting firm in the aviation industry said CBS. Production problems led to “a state of chaos in airline business and capacity plans for most of the second half of the year.” In particular, the region most affected will be Southwest, whose fleet consists exclusively of several aircraft Boeing 737 Max.

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Airline ticket prices are already showing an increase of almost 6%, according to February data from Aviation Reports Company. In this regard, Mann expects that costs could escalate by up to 10% in some scenarios, resulting in a significant increase for consumers, especially those planning family trips.

Limited availability of 737 MAX models leads to potential escalation in flight prices, complicating summer vacation plans (Reuters/Peter Chibura)

Despite the bleak outlook, the expansion of low-cost airlines, e.g breeze, spirit And a barrierIt can provide partial relief to travelers, by introducing a competitive dynamic that helps balance prices in the market.

This complex scenario highlights the interconnectedness between aviation production and the consumer flying experience, as delays in the delivery of new aircraft could not only limit the expansion of air supplies, but could also significantly increase costs to travelers, thus changing the travel plans of many. of people in this process.

In the meantime, Boeing It is still at the center of the storm, due to criticism after multiple incidents where its planes have caused concern among customers due to lack of safety and reported malfunctions.

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