The Houston Chronicle reports that airlines “that cut back to survive the crisis are now blowing through profit forecasts and luring back investors.” One example of this is Virgin Australia, which has “undergone a remarkable transformation under new owner Bain Capital and plans to relist in Sydney.” Another is Ryanair, which “returned to profit in the quarter through December and sees no end to its lucrative run.” These and other “freshly streamlined carriers are capitalizing on a surge in travel since virus restrictions fell away.” The International Civil Aviation Organization “expects passenger demand to recover to pre-Covid levels on most routes this quarter and then to about 3% higher than 2019 levels by year-end.”
Full Story (Houston Chronicle)
Tag: REbound
Aerospace Supply Chain Seeing Long Climb Back to Health
FlightGlobal reports, “At first glance, the US commercial aerospace industry might seem to be enjoying a broad and rapid recovery from the lows seen at the height of the pandemic. But appearances can be deceiving. Yes, Boeing in 2022 managed to significantly ramp up aircraft deliveries, but many of those were jets from the airframer’s inventory – built months or years prior.” Boeing in 2022 “delivered 480 aircraft, up from 340 in 2021 thanks largely to a significant bump in 737 Max deliveries. The US manufacturer handed over 387 737s last year, up from 263 in 2021. Boeing also resumed 787 deliveries in August 2022 after a pause due to fuselage-quality issues that lasted most of 22 months. The company delivered only 31 of the widebodies last year, up from 14 in 2021. Those figures do indeed show improvement, but the US civil aerospace sector is actually recovering more slowly than deliveries suggest.”
Full Story (FlightGlobal – Subscription Publication)
Aerospace Industry Rebound Could be Harmed by Fragile Supply Chain
FlightGlobal reports that Safran Chief Executive Olivier Andries warned last week that the industry’s supply chain has been weakened by the COVID-19 pandemic. Andries noted “concerns about human resources” and “tensions in raw material availability” as notable factors. The Boeing Company Chief Executive David Calhoun said, “By the second half of next year, our industry will be supply constrained. Raw materials, logistics and labour availability will also be key watch items for future rate increases.”
Full Story (FlightGlobal)