Airfare prices for your summer vacation could reach record highs this year as delays in manufacturing new Boeing planes risk reducing the number of flights available in the United States.
U.S. airlines are expected to receive 40% fewer planes than they anticipated last year, leaving the industry in a tough spot to find ways to book more flights for what is expected to be a record air travel this summer.
“From a consumer perspective, with strong demand and relatively low supply, it’s a recipe for higher airfares,” Richard Aboulafia, managing director of Aerodynamic Advisory, told NBC News.
The supply shock for the airline industry is due to the delay in delivery of new Boeing planes. United Airlines alone received a contract to receive 43 Boeing 737 Max 8 and 34 Max 9 model aircraft in 2024, but now expects to receive 37 and 19, respectively.
“We’re putting customers in a difficult situation (and) the most important thing we do is communicate with them,” Boeing Chief Financial Officer Brian West said at a Bank of America conference last month . “And they’ve been supportive of everything we’re trying to do to improve the safety and quality of the industry. We communicate regularly and very transparently and they know precisely where we are and the progress we’re making and we At the same time, we need to understand what their needs are when thinking about their flight schedules and their passengers.
The largest delay concerns Boeing’s Max 10s, as the planned model has not been certified by the Federal Aviation Administration and has not been given a delivery schedule.
United alone has been contracted to receive 80 Max 10s this year and 71 in 2025.
Southwest and United Airlines suspended hiring because of the delays, and United offered pilots unpaid leave.
And Southwest and Alaska Airlines are unable to predict how many flights they will be able to handle due to the delays.
It was an Alaska Airlines flight that initially caused the recent unrest at Boeing. The shattering of part of the plane’s fuselage led to multiple investigations into Boeing and its manufacturing practices.
“That means higher prices, but also planes that would be fuller than they otherwise would be,” said Scott Keyes, the founder of Going.com.
A whistleblower and former Boeing employees testified Wednesday before a Senate committee about allegations that the company covered up serious safety problems with Boeing planes. “I want to clarify that I have raised these questions for three years,” testified whistleblower and quality engineer Sam Salehpour. “I was ignored, told not to create delays and told, frankly, to shut up.”
NBC Chicago
