07:18:00 EDT Sat 27 Apr 2024
Enter Symbol
or Name
USA
CA



Air Canada
Symbol AC
Shares Issued 358,424,520
Close 2023-04-19 C$ 19.64
Market Cap C$ 7,039,457,573
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Globe/wire say Air Canada hears spare parts are problem

2023-04-20 09:04 ET - In the News

Also In the News (C-ONEX) Onex Corp
Also In the News (C-TRZ) Transat AT Inc

The Globe and Mail reports in its Thursday edition that global airline capacity will be lower than expected this year and stay constrained until 2025 at the earliest, warned International Air Transport Association director general Willie Walsh. A Reuters dispatch to The Globe says that the problem is delays in new aircraft deliveries and a lack of availability of spare parts. "I can't see anything really improving or significantly improving probably until 2025 at the earliest and it may even go beyond that," Mr. Walsh told Reuters on the sidelines of a conference in Dublin on Wednesday. Airlines, hoping to put years of pandemic restrictions behind them, expect travel demand to recover to 2019 levels and above this year, but the lack of planes to meet demand could put a brake on growth. Aircraft makers Boeing and Airbus are feeling widespread pressure from bottlenecks in supply chains and that is leading to delivery delays, while Mr. Walsh said that airline bosses were also telling him there were not enough spare engine parts. "It means capacity will be slightly lower than the industry had forecast," Mr. Walsh said, adding that he would expect the reduction for this year to be in the low single digits range.

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