Walsh said he did not believe the region would suffer lasting damage as an aviation hub because of its geographic importance and the strength of its airlines, which account for 14% of global capacity.
“That capacity cannot be replaced by airlines from other regions around the world,” Walsh said. “Once things settle down, I would expect the Gulf carriers to regain their important position in the market.”
Airlines are also being held back by slow aircraft deliveries from Boeing and Airbus, as well as engine delays from GE Aerospace and Pratt & Whitney, a unit of RTX.
The shortages are limiting carriers’ ability to grow their fleets and improve efficiency.
Walsh said frustration in the industry was rising, particularly because engine makers were reporting strong profits while airlines were under pressure.
He estimated that supply chain disruption cost airlines about $11 billion last year. “We’re disappointed that they’re not moving faster.
We’re disappointed that they’re not sharing the pain that the airline industry is sharing,” he said.
Aircraft and engine manufacturers have said many of the delays are beyond their control, citing post-pandemic supply chain problems and political trade disputes.
Walsh also said future competition would eventually come from China, where Comac is developing aircraft to challenge Boeing and Airbus.
However, he noted that the manufacturer still faces certification obstacles in Europe and the United States and remains dependent on Western engines and avionics. “Probably 10 to 15 years from now, people won’t just talk about Airbus and Boeing. It’ll be: Airbus, Boeing, Comac,” he said.
Financial pressure on airlines and weaker climate policy momentum in the US under Donald Trump have made industry leaders more cautious about meeting the sector’s 2050 net-zero emissions target.
Walsh said IATA was not prepared to walk away from the goal, but admitted progress had been slower than expected.
“I certainly believe it’s more challenging to achieve net zero in 2050 because we’ve not made the progress that we had expected to see on the development of sustainable fuels,” he said.
Reuters
