Air Lease doubts if Boeing, Airbus can meet annual delivery targets
Reuters
Published Nov 06, 2023 11:59AM ET
Updated Nov 06, 2023 04:26PM ET
(Reuters) - Air Lease (NYSE:AL) on Monday cast doubt on whether planemakers Boeing (NYSE:BA) and Airbus would hit their 2023 delivery targets due to quality issues at their suppliers.
"Our feeling at the moment ... is that neither of the two big players will reach the target deliveries that they forecast," Air Lease Chairman Steven Udvar-Hazy said in response to an analyst question on fourth-quarter deliveries during a post-earnings call.
The ongoing jet shortage has benefited lessors such as Air Lease, with the company reporting a third-quarter profit per share of $1.10, beating analysts' estimates of $1.03, according to LSEG data.
Jet deliveries usually rise during November and December as planemakers rush to meet their annual target, but delays from Boeing and Airbus have left airlines scrambling to meet strong travel demand in the busiest season of the year.
Last month, U.S. planemaker Boeing cut the delivery forecast for its best-selling 737 jets for the year, citing quality issues at supplier Spirit AeroSystems (NYSE:SPR).
Its rival Airbus has set a delivery target of 720 commercial jets this year. Reuters reported earlier on Monday that the European planemaker handed over 55 aircraft in September, bringing total deliveries so far this year to 559 units.
"On the Airbus side, the situation with engine suppliers in Pratt & Whitney is not enabling Airbus to meet their fourth-quarter targets," Air Lease's Udvar-Hazy said.
"A lot of engines are being diverted as spare engines to keep airlines flying."
Pratt & Whitney-owner RTX in September told airlines hundreds of their Airbus jets would be grounded at any one time in coming years to check for a rare manufacturing flaw.
Air Lease also said it had two of its aircraft on lease to a customer in Israel.
"We continue to monitor this region very closely with all of our airline lessees," Air Lease CEO John Plueger said.
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Written By: Reuters
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