European airlines feeling the impact of planemaker delays: European airlines, including Lufthansa and Air France KLM, are expected to report drops in their 3Q reports this year amid plane shortages and rising costs, while delivery delays from planemakers Airbus and Boeing show no sign of easing anytime soon, Reuters reports. The delays have forced airlines to use older models that are expensive to maintain and use up more jet fuel. Carriers are also feeling the impact of rising maintenance costs, adverse weather conditions, air traffic control issues, and disruptions due to tension in the Middle East.

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Bleak outlook: “We don’t expect to get [new Boeing aircraft] until 2026. And we need them,” Lufthansa Chief Executive Carsten Spohr told journalists. The carrier forecasted to report a 9% y-o-y dip to EUR 1.3 bn in its top line in its 3Q earnings, the newswire reports, citing a company-led analyst poll.

Demand is unwavering: “European airlines are in an extremely unequal competitive position with China, as well as with airlines from the Persian Gulf and Bosporus,” a Lufthansa spokesperson told Reuters. “All airlines from these countries benefit from low location costs, different social standards and high government investment in the aviation sector.”

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