"Even China Joins After Lifting Restrictions... Growing Concerns Over Aviation Chaos"

[Asia Economy Reporter Yujin Cho] Bloomberg reported on the 28th (local time) that as China reopens its skies by lifting COVID-19 quarantine measures, the global shortage of aircraft supply is intensifying.

According to investment bank Jefferies, the total number of aircraft ordered but not yet delivered to airlines worldwide is estimated to reach 12,720. Global airlines such as United Airlines and Air India have ordered or are planning to order hundreds of aircraft, but due to supply chain constraints, it is expected to take several years before these aircraft are delivered.

The most popular single-aisle models from Boeing and Airbus, which dominate the global aircraft manufacturing market, have already sold out deliveries through at least 2029.

Bloomberg assessed that this means the recent months of soaring airfares will continue for the time being and may worsen further. Azai Autani from the travel specialist site Live From Lounge said, "As China reopens its skies, the supply shortage situation could worsen," adding, "Not only the aircraft supply shortage but also rising oil prices are driving up airfare prices."

[Image source=AP Yonhap News]

The delay in normalizing the supply chain due to difficulties in procuring key parts and labor shortages is also worsening the situation. Airbus decided earlier this month to lower its delivery target by 700 passenger aircraft citing supply chain issues. Airbus also pointed out that rising energy prices have caused financial difficulties for aircraft parts suppliers, hindering the normalization of the supply chain ecosystem.

As travel demand shrank due to lockdown policies in various countries amid the spread of COVID-19, airlines reduced their fleets or restructured their fleet strategies from large aircraft to smaller ones, which has also contributed to the supply crisis.

With economic reopening leading to increased overseas business trips and explosive demand for international travel after several years, there are forecasts that airfares may rise further next year.

This content was produced with the assistance of AI translation services.