The air transportation industry could face turbulence in 2023 thanks to “frustrating” supply chain issues and persistent staffing shortages.
Demand for air travel has mostly rebounded since COVID-19 restrictions crippled the industry. Still, a shortage of new aircraft, airplane parts, and air traffic controllers will likely impede airline activity for the remainder of the year, according to Willie Walsh, director general of the International Air Transport Association (IATA), the trade association for the world’s airlines representing over 300 air carriers.
While Walsh believes the industry’s challenges are more short-term, he noted the importance of sorting out all critical supply chain issues before travel demand fully returns either this year or next.
Major U.S. airlines “are not concerned about the macroeconomic environment, they’re concerned about the access to spare parts for their existing aircraft and the delivery of new aircraft,” said Walsh, according to the Taipei Times.
“It’s frustrating because airlines can see strong demand, but they’re not able to match supply with demand in many markets,” he continued. “And this is something we want to see resolved.”
As the airline industry struggles to overcome its supply chain kinks, Walsh explained to CNBC’s Dan Murphy how a noticeable shortage in engine parts has led to delays in the delivery date of future Boeing Co. and Airbus SE aircraft.
Walsh told CNBC that we are already seeing an impact on the aviation industry thanks to these supply chain issues.
Although Walsh maintains a cautious outlook through 2023, he said he is still “optimistic” for the industry as a whole.
“Airlines and airports were criticized last year for not getting resources in place in time for the recovery,” he said, per CNBC. However, Walsh said he thinks “the airlines have done their bit,” with most airports operating “in good shape.”
“Taking the overall picture into account … we can be positive about 2023 and beyond,” he told CNBC.
