Why Boeing's woes could mean higher airfares for U.S. travelers

Boeing's accumulation woes could lead to higher airfares and less flights for travelers to take from. 

The aviation elephantine is experiencing accumulation delays arsenic it grapples pinch nan fallout from a Jan. 5 emergency connected an Alaska Airlines flight, including addressing manufacturing and different operational defects. That is delaying craft deliveries for carriers including United Airlines and Southwest Air Lines.

Boeing data shows that done nan extremity of February, it had a backlog of astir 4,800 orders for  737 Max aircraft. That included 71 737 Max planes purchased by American Airlines, 100 for Delta Air Lines, 219 for Ryanair, 483 for Southwest and 349 for United. Their expected transportation dates were not specified. The craft shaper delivered a full of 42 737 Max jets successful nan first 2 months of nan year.

"Disappointing news for consumers"

"It's not that airlines will person to trim flights — it's that they won't beryllium capable to adhd arsenic galore caller flights arsenic they possibly had hoped to for nan summer," Henry Harteveldt, an hose expert pinch Atmosphere Research Group, told CBS MoneyWatch. "It's disappointing news for consumers and for airlines. Consumers whitethorn not person arsenic galore flights, and airlines won't beryllium capable to connection arsenic galore flights and make much money. It's lose-lose for airlines and travelers." 

Southwest said it does not publically talk airfare prices. United besides did not remark connected airfares. 

Even without a hold successful pitchy deliveries, beardown user request tin thrust up nan value for tickets. But reduced craft accumulation capacity and precocious substance costs are expected to put moreover much upward unit connected nan costs of flying. 

"Airlines are intimating that summertime request looks good, and that to maine suggests that airfares would beryllium higher anyway," Harteveldt said. "But obviously, erstwhile an hose doesn't person each nan craft it expects to person and frankincense can't run each nan flights pinch each nan capacity, there's a chance airfares would beryllium higher than they different would person been."

Working successful consumers' favour is nan truth that fund airlines including Breeze, Spirit and Velo are expanding, he added. "That provides a counterbalance to nan fares nan larger airlines charge."

Airline plans deed turbulence

Aircraft accumulation issues person thrown airlines' "business and capacity plans into disarray for astir of nan 2nd half of nan year," said Robert Mann of R.W. Mann & Company, an hose manufacture consulting firm.

Southwest, which only flies 737s, will consciousness nan deed from Boeing's issues astir acutely. The hose has indicated it does not expect nan 86 Boeing craft it had ordered to get this year, making it intolerable for nan hose to adhd fligths. 

"It will inevitably mean little capacity successful nan 2nd half of nan twelvemonth against what nan hose had indicated earlier. An abrupt simplification successful capacity for illustration that will consequence successful immoderate higher prices," Mann said.  

He expects consumers to person less flights to take from connected home and short-haul world routes to places specified arsenic Mexico and The Caribbean. 

Prices for aerial tickets sold successful February were up astir 6%, according to nan Airline Reporting Corporation. Mann expects costs to emergence by arsenic overmuch arsenic 10% successful immoderate cases. On an mean fare of $573, that's astir $57 more; for a family of four, that amounts to an other $230 further dollars. 

"It could beryllium significant," he said. 

Public cognition of really safe it is to alert is paramount to airlines and nan aerial recreation industry. In a worst-case result for airlines, Boeing's woes could lead immoderate travelers to propulsion backmost connected level recreation complete perceived risks.

But craft manufacturers' accumulation problems aren't expected to lead to a important alteration successful user behavior, according to Scott Keyes of Going.com. 

"When you bargain a ticket, you're not buying from Boeing aliases Airbus, you by from Delta, United aliases Spirit," Keyes said. "You don't look astatine what airplane will beryllium flying and optimistically location will beryllium small effect connected nan number of travelers."

If bookings were to drop, airlines would person to slash fares to effort to lure group backmost to nan skies. 

"If you shaved distant 1 to 4%, that could person large effect connected margins and we'd spot cheaper fares," Keyes said.  

In:
• Travel
• Boeing
• Boeing 737 Max