European airlines struggle as jet shortage limits travel capacity

Today, May 22, 2025, the airline industry is facing significant challenges due to a global jet shortage. EasyJet, a British low-cost carrier, is one of the airlines impacted, as highlighted by CEO Kenton Jarvis. He noted that both leading manufacturers, Boeing and Airbus, have faced ongoing issues that prevent them from meeting delivery targets. This situation is particularly critical as the industry approaches the peak travel season during the summer months. Airlines are experiencing an increase in demand, with EasyJet's current bookings exceeding those from the previous year. However, the supply of new aircraft is lagging behind this demand. EasyJet reported a pre-tax loss of £394 million ($529 million) for the first half of the fiscal year, reflecting a worsening financial situation compared to the £350 million loss during the same period in 2024. Despite the financial losses, there are signs of optimism regarding demand, with advanced bookings ahead of last year, according to Jarvis. Nevertheless, the airline's growth in capacity is expected to be modest, with increases limited to 1%, 2%, or 3%. This is a direct result of delays in aircraft deliveries that are affecting all airlines in the market. The supply chain disruptions and production difficulties that have beset Boeing in recent years are contributing factors to the current delays. Boeing has recently reported a rise in deliveries, with 45 commercial jets delivered in April, nearly double the previous year's total. However, industry analysts suggest that Boeing and Airbus still face significant challenges in meeting their targets for 2025. The ongoing delivery delays are likely to have long-term implications for airlines as they navigate a period of high travel demand. In summary, the airline industry is preparing for a busy summer travel season despite facing serious constraints on capacity due to aircraft delivery delays from manufacturers. EasyJet, while experiencing strong demand, has also reported increased financial losses. With the issues at Boeing and Airbus set to take years to resolve, the industry must adapt to a landscape where supply struggles to keep pace with a thriving demand for air travel.