Airline industry expected to rise above supply-chain issues

2024 will present challenges for passengers, slot utilisation and revenue

Increasing demand post-COVID, plus a general strategic desire amongst carriers to modernise their fleets with more efficient aircraft, led to airlines placing numerous aircraft and engine orders in 2023. However, with issues being reported by engine providers, as well as several aircraft manufacturers experiencing supply-chain issues and pushing back delivery dates, it is likely that 2024 will not go as planned for most carriers.

Airlines across the globe have already been warned that they will need to ground several aircraft from their fleet over the next 12 months or expect delays in the delivery of new aircraft. Both moves will undoubtedly cause great disruption to any planned expansion and operating schedules. In turn, this is likely to have a knock-on effect on passengers, slot utilisation and revenue.

While a significant number of carriers have already reported that they will need to adjust their operations for 2024, these ongoing supply chain issues will nevertheless drive airlines to continue to think outside the box in order to overcome these challenges – be that through leasing of additional aircraft to replace grounded ones, innovative deals in relation to maintenance support and pricing or potential workarounds in relation to overcoming delays and shortages.

Ultimately, whilst 2024 does indeed look to be a challenging year for the aviation industry, it is fully expected that the airline industry will overcome these obstacles through resilience and innovation, as it has successfully done in the past.