The CEO of a major airline has announced that travelers can expect to pay higher fares this summer due to delays in the delivery of new Boeing planes. The airline’s chief executive stated that the delayed arrival of the new aircraft will limit passenger capacity, resulting in a potential 10% increase in ticket prices. The airline is hoping to receive compensation for the delays, but is primarily focused on ensuring that the planes are delivered on time.
The airline was expecting to receive 57 Boeing 737 Max 8200’s by March, but now anticipates that only 40-45 of these planes will be delivered in time for the summer season. This delay is attributed to the increased scrutiny and quality control measures that Boeing has been facing since a recent incident involving one of its jets. As a result, the US manufacturer has been under intense scrutiny by the US Federal Aviation Administration.
The CEO also mentioned that other airlines are facing similar capacity constraints due to the unavailability of aircraft. For example, issues with Pratt & Whitney engines have grounded a number of Airbus planes used by other carriers. As a result, a “higher fare environment across Europe” is expected this summer.
The airline’s original forecast for the year was to carry 205 million passengers, but due to the reduced aircraft capacity, this number may need to be revised down to 200 million passengers. The CEO emphasized that if capacity was growing, fares would likely be falling. However, the current situation has led to a projected increase in ticket prices.
An investment director at JM Finn commented on the situation, noting that Boeing has announced that there will be 9,000 fewer seats available this summer due to the delays. The CEO of the airline has expressed confusion with the messages coming from Boeing, and has criticized the company’s quality control standards.
In response, a spokesperson for Boeing stated that they are working to address the concerns of their customers and are taking action to strengthen 737 quality and delivery performance. They also expressed regret for the impact that the delays are having on their valued customer, the airline.
The airline’s CEO has been vocal in his support for Boeing’s top management, but has also been critical of the company’s handling of the situation. He expressed a desire for a single person to be in charge of monitoring the situation daily, rather than having multiple individuals overseeing different aspects of the production and delivery process.
Overall, the delays in the delivery of new Boeing planes have led to concerns about reduced passenger capacity and potential fare increases for travelers this summer. The airline is working to address these challenges and ensure that passengers are able to travel as smoothly as possible.
