Recession unlikely to ground air travel recovery, says industry expert

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Aircraft lessor Avolon predicts strong demand as China re-opens but warns there will be no quick fix on delays in new plane deliveries

Mr Cronin also argued that, unlike Covid, which had a near uniform impact around the world, a recession was likely to move at a different pace through different regions.

The Avolon chief executive warned news agency Reuters that there would be no quick fix to the aircraft delivery delays that threaten to dampen the industry’s recovery as plane makers wrestle with weak supply chains. He is one of several chief executives who recently highlighted delays by manufacturers Boeing and Airbus in delivering promised aircraft to airlines and lessors.

Avolon uses debt and cash to buy ‘planes from manufacturers which it leases to 146 airlines around the world. The Irish company expects airline revenues to grow this year and next as travel continues its recovery. Cash flow grew 35 per cent to $1.2 billion while total assets ticked $188 million up to $30.8 billion. Avolon owned or managed 576 aircraft on December 31st.

 

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