Global Aircraft Lessors Face Jet Supply Challenges

At the annual Airline Economics meeting in Dublin, financiers and lessors in the air travel industry expressed optimism over strong lease rates and stable oil prices, but raised concerns about ongoing jet shortages and supply chain issues. Industry leaders reported that both Boeing and Airbus are struggling to meet production targets, with delays expected to persist until at least 2027, affecting the availability of efficient new aircraft. Many delegates believe that the market may not return to an excess of capacity for another three years, while some anticipate a longer shortage due to the removal of 4,000 unbuilt jets from the pandemic. The demand for older second-hand planes has surged as airlines seek to fill gaps in their fleets. Independent aviation adviser Bertrand Grabowski highlighted that the pace of manufacturers' delivery ramp-up will significantly impact the market dynamics. The meeting also covered potential trade tensions that could disrupt aerospace supply chains.