Prices for airfare for your summer vacation may be sky high this year after manufacturing delays for new Boeing aircraft are likely to decrease the amount of flights available in the United States.
U.S airlines are expected to receive 40% fewer planes than they had planned for last year, leaving the industry in a scramble to find ways to book more flights for what is expected to be record air travel this summer.
"From a consumer stand point, with demand strong and supply relatively weak, that's a recipe for higher airfares," Richard Aboulafia, the managing director of Aerodynamic Advisory, told NBC News.
The supply shock for the airline industry is due to the delayed delivery of new Boeing planes. United Airlines alone was was contracted to receive 43 Boeing 737 Max 8 planes and 34 Max 9 models in 2024, but now expects to receive 37 and 19, respectively.
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“We put the customers in tight spot [and] the most important thing we do is communicate with them," Boeing CFO Brian West said at a Bank of America conference last month. "And they have been supportive of everything we’re trying to do to enhance safety and quality for the industry. We are in regular, very transparent communications and they know precisely where we stand and the progress that we’re making and we, at the same time, have to understand what their needs are as they think about their flight schedules and their passengers.”
The largest delay is on Boeing's Max 10s, as the anticipated model has not been certified by the Federal Aviation Administration and has not been given a timetable for delivery.
United alone was contracted to receive 80 Max 10s this year and 71 in 2025.
Both Southwest and United Airlines have paused hiring due to the delays, and United has offered pilots unpaid leave.
And, Southwest and Alaska Airlines are not able to forecast how many flights they will be able to handle due to the delays.
It was an Alaska Airlines flight that initially caused the recent turmoil at Boeing. A blowout of part of the plane's fuselage has led to multiple investigations into Boeing and its manufacturing practices.
"It means higher prices, but also planes that would be more full than they would otherwise be," said Scott Keyes, the founder of Going.com.
