(Bloomberg) -- Aircraft delivery delays at Boeing Co. and its European rival Airbus SE are forcing some carriers to furlough crews and review expansion plans, according to the head of airline industry’s main lobby group.
“We’ve seen airlines actually starting to furlough pilots and some crew, and it’s not a demand issue, it’s because they’re not getting the aircraft that they can expect it to get,” Willie Walsh, the director general of the International Air Transport Association, said in an interview at a conference in Amsterdam. He didn’t identify which airlines had placed staff on leave.
Production at Boeing had already been curbed after a near-catastrophic accident in January, before a strike by 33,000 workers at its Seattle-area plants halted production of its workhorse 737 Max model. Airbus, meanwhile, continues to grapple with supply chain issues and could be forced to once again downgrade its annual delivery forecast.
The slowdown at manufacturers has left airlines frustrated because they cannot properly plan ahead for new aircraft to join the fleet, Walsh said.
In Europe, low-fare leader Ryanair Holdings Plc has cut its annual passenger forecast and has pared back some routes because of Boeing’s deliveries slipping. Smaller rival Wizz Air Holdings Plc recently said that its goal to grow to 500 jets by 2030 could slip into 2031 or 2032 because of supply-chain issues. Deutsche Lufthansa AG has been forced to fly older aircraft for longer as it awaits the arrival of new jets.
Carriers are already looking to moderate their original growth plans in 2026 and are “less likely to commit to expansion” over the next two years because of the ongoing supply chain issues, Walsh said.
“I think these are challenges that will continue for some years to go,” he said.
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