Delays in aircraft deliveries are expected to persist for years, said Steven Udvar-Házy, executive chairman of Air Lease Corporation (ALC).
The Center for Aviation (CAPA) reported that Udvar-Házy, who has over five decades of aviation experience, predicted that the normalization of aircraft deliveries is still three to four years away.
Udvar-Házy’s insights cast a spotlight on the ongoing production challenges faced by the industry’s leading manufacturers, Airbus and Boeing.
Airbus managed to deliver 766 units in 2024, outpacing Boeing’s 3481. This marks the sixth consecutive year of delivery superiority for Airbus, which also boasts an order backlog that is 43% higher than Boeing’s.
Both companies are experiencing unprecedented order volumes, yet the pace of deliveries suggests that it will take nearly 14 years to clear the current backlog if the 2024 rates continue.Amidst these industry-wide challenges, Air Lease Corporation maintains a robust portfolio.
As of December 31, 2024, ALC’s fleet included 489 owned and 60 managed aircraft, with 269 new orders from Airbus and Boeing slated for delivery through 20291.
In the last quarter alone, ALC delivered 18 aircraft from their order book, including a mix of Airbus A220s, A321neos, A330-900neos, and Boeing 737-8s and 787-10s.
ALC’s investments amounted to approximately $1.3 billion, with aircraft sales generating proceeds of around $540 million1. The company also secured a new $966.5 million unsecured term loan facility maturing in December 2027. Udvar-Házy’s commentary highlights the enduring complexities and prolonged recovery timelines confronting the global aerospace industry.
