Boeing, Airbus Delivery Delays May Persist Another Five Years, BA Warns

This article first appeared on GuruFocus.

British Airways, the UK flagship carrier owned by airline group IAG, expects aircraft delivery delays from Boeing (NYSE:BA), a commercial aircraft manufacturer, and Airbus (EADSY), a European aircraft manufacturer, to continue affecting its fleet plans for the next five years. British Airways Chief Executive Officer Sean Doyle said the airline is still waiting for Boeing's 777X widebody jet, which was originally scheduled for delivery in 2022. Doyle also noted that some Airbus aircraft are arriving behind schedule, although he did not identify the affected models.

Warning! GuruFocus has detected 3 Warning Signs with BA.

Is BA fairly valued? Test your thesis with our free DCF calculator.

The delivery setbacks have pushed British Airways to order additional aircraft capacity to cover potential gaps in its operations. Speaking during a panel at the Farnborough Air Show on Monday, Doyle said aircraft deliveries do not arrive early, leaving the carrier to secure extra lift while it waits for delayed planes. Investors may view the additional capacity requirements as a sign that manufacturing disruptions could continue influencing airline fleet growth and operational planning.

Boeing and Airbus are still working through production problems that have delayed aircraft deliveries across the aviation industry. Boeing was required to limit production of its bestselling narrowbody aircraft following a near-catastrophic incident involving a 737 Max in early 2024, while Airbus has faced shortages involving parts and aircraft interior components. Doyle said the aviation supply chain could remain less resilient and subject to heavier regulatory requirements for another four to five years, suggesting aircraft availability may remain a key concern for airlines and manufacturers.