Airline Industry Grapples with Severe Shortage of Widebody Aircraft

The airline industry is facing a severe shortage of widebody aircraft due to production delays and supply chain constraints. Both Airbus and Boeing are struggling to meet demand, with many orders still awaiting delivery in the coming years. The current backlog for new widebodies is staggering, with over 1,500 A350s and 787s on order, as well as nearly 700 777Xs.

Production rates have been reduced due to various factors, including supply chain issues, retirements of skilled workers during the pandemic, and a general shortage of raw materials. For example, Airbus's Spirit AeroSystems plant in North Carolina is suffering from transition challenges and short staffing, which has resulted in the A350 being built at a rate of only six per month.

Boeing is also facing production challenges, particularly with the 777X program, which was supposed to begin delivering aircraft in 2020. The company's own suppliers, including General Electric and Rolls-Royce, have contributed to delays due to delivery timelines. However, Boeing has been working on resolving its production issues and is building a second final assembly line for the 787 program.

The impact of this shortage will be felt across the industry as airlines struggle to expand their fleets and meet growing demand for air travel. As a result, many airlines are being forced to seek out leased or used aircraft to supplement their fleets.