DUBLIN : Financiers at the centre of a $200 billion industry underpinning airline fleets are meeting in Dublin this week, gambling that China's decision to free travel will accelerate their recovery from a pandemic downturn, while warning of a shortage of jets.
The International Air Transport Association, which represents global airlines, is predicting full recovery in 2024. The crippling impact of COVID-19 saw dozens of airlines go out of business and wiped billions of dollars off balance sheets.In a sharp reversal, the industry's biggest worry now is getting hold of enough of narrow-body jets, which are the most widely used, to meet demand as battered supply chains delay new aircraft deliveries.
In public, airlines and leasing firms have deplored delivery delays and are seen likely to press aircraft makers for compensation. At the same time, a slew of macroeconomic concerns is keeping delegates on edge ahead of the annual Dublin conferences hosted by Airline Economics and Airfinance Journal this week.
All airlines face volatile oil prices, and those in most emerging markets face a steep rise in the cost of dollars needed to pay for aircraft rentals and fuel.