Travelers could see higher fares, fewer available seats as Airbus cuts number of planes it expects to make this year
How has the jet supply issue affected airline expansion plans?
The jet supply issue has forced airlines to adjust their expansion plans due to tighter-than-expected supply of jets, even as they deal with record demand for air travel. This has led to fewer available seats and higher fares for passengers. Airlines such as Southwest have altered their fleet plans for 2024 due to supply chain challenges and uncertainty over certification of the smaller MAX 7.
How much did airfares increase in 2022 according to the Consumer Price Index?
Airfares increased by 30% in 2022 compared to the previous year, according to the Consumer Price Index. This rise in airfare prices was due to high demand for air travel, staffing shortages, and limited flight availability as airlines struggled to meet the post-pandemic rebound in demand.
What caused Airbus to reduce its plane production targets?
Airbus reduced its plane production targets due to persistent supply chain issues, mainly in engines, aerostructures, and cabin equipment4. These challenges have led to delays and disruptions in the manufacturing process, prompting the company to adjust its expectations for aircraft deliveries this year and next.