According to a Bloomberg News report, Air France-KLM’s Chief Executive Officer Ben Smith said that the delays are causing big backlogs at major European carriers.
Boeing (BA) and Airbus SE are reportedly facing “unprecedented” delays in aircraft certification and delivery, hindering airline expansion and efforts to decarbonize, according to customers.
According to a Bloomberg News report, Air France-KLM’s Chief Executive Officer Ben Smith said that the delays are causing big backlogs at major European carriers. He noted that every supplier is behind schedule, and there have been no improvements since the pandemic ended.
“For some long-haul airplanes, we’ve been waiting for certification for seven or eight years, which is unprecedented,” the report added citing Smith at an Airlines 4 Europe online press conference. “I don’t think any of us have too much hope that it’s going to get better in the short term,” he said.
Retail sentiment on Boeing dipped to ‘neutral’ from ‘bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits. Shares of the company were down nearly 1% in premarket trading.
Bloomberg noted that Deutsche Lufthansa AG and IAG SA, the parent of British Airways, are still waiting on Boeing’s 777X, which is at this point six years late to the market.
The report said that the delays have been worsened by a U.S. government shutdown, which has halted aircraft inspections. Lufthansa’s CEO Carsten Spohr said that this has impacted the approval of a seat type on its new Boeing 787s. Lufthansa’s flight connections with American partners are being disrupted by the ongoing impasse in Washington, he said.
Bloomberg said that the airline executives were more optimistic about the short-haul aircraft market. Ryanair Holdings CEO Michael O’Leary said that Boeing has made “significant progress” on ramping out 737 Max jets even though the deliveries are still delayed.
Separately, Boeing has been awarded a combination of multiyear contracts valued at about $2.7 billion to produce additional Patriot Advanced Capability‑3 (PAC‑3) seekers. The company said that under the agreements, Boeing will deliver more than 3,000 seekers at rates of up to 750 units per year through 2030.
Boeing is working closely with prime contractor Lockheed Martin and the U.S. Army to further increase production rates and meet new targets for the PAC-3 interceptor.
Shares of Boeing have gained over 41% in the last 12 months.
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