Challenge commercial barriers and global aircraft delay

Written by Nandan Mandalam, Shevanc Tawari and Rajesh Kumar Singh

New Delhi (Reuters) – Airlines warned on Monday that the increasing commercial barriers had destroyed the global economy and pledged to resist the efforts made by manufacturers to pass a tariff on higher prices for aircraft.

Airlines also complained that the “unacceptable” aircraft delays were weakening growth at a time of the standard passenger numbers, as the International Air Transport Association shaved a major expectation of 2025 profits at the level of industry.

“Like all forms of communication, the aircraft makes the world more prosperous,” said Willie Walsh in New Delhi.

“This stands unlike isolation and commercial barriers and fragmenting the system based on multilateral rules. This destroys low wealth and living. For the times we live, this is an important message,” he said.

The comprehensive definitions imposed by US President Donald Trump neglected concerns about the economic slowdown and the pressure of estimated spending, prompting many consumers, especially in the United States, to delay or expand travel plans.

“The consumer is not certain,” said Joana Giragti, CEO of Jetblue Airways.

IATA now expects that global airlines will make a joint profit of $ 36.0 billion this year, down from previous expectations of $ 36.6 billion in December, but from 32.4 billion dollars last year.

Walsh said that there is no evidence yet that the prices of aircraft have increased due to the definitions, but the airlines will resist any attempt to charge more.

GE Aerospace and many other airlines said they are going through the costs of customs tariffs in additional fees.

IATA represents about 300 airlines and 80 % of global traffic.

Delay delivery

More people fly more than ever after the passenger market is recovered, but the growth of airlines is disabled by delaying the extended delivery and supply bottlenecks.

Walsh called predictions to delay the delivery of aircraft during this contract “unacceptable outside the plan.”

He said that the airline industry was evaluating the legal options for delay, but it preferred to work with manufacturers.

“The industrial sector fails badly,” he said.

Planemakers Airbus and Boeing did not have any immediate comment.

IATA said that the number of delivery operations scheduled for 2025 was 26 % lower than her promise a year ago.

“The delays have become unforgivable. Transparency, to be frank, lack, and we feel solid,” said Stephen Greenwi, CEO of Saudi Budget Company, Reuters.