DUBLIN (Reuters) – A long-running production shortfall by planemakers will underpin supply and demand dynamics that are boosting airline and lessor profits for at least another decade, the head of the world’s second-largest aircraft leasing company Avolon said on Friday.
Aircraft manufacturers and suppliers have struggled to keep up with a post-pandemic recovery in travel due to rising costs, labour and parts shortages, issues that have been exacerbated by safety woes at Boeing (NYSE:) and a strike by its staff last year.
Avolon’s annual outlook report predicted that airlines’ net profit would rise by 16% to over $36 billion in 2025, driven by low fuel prices, strong revenue and the fact that plane shortages have allowed them to prioritise the most profitable routes.
“That production shortfall underpins the supply and demand balance, not just for the next three or four years, but for at least another decade,” Avolon Chief Executive…
