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Aviation industry faces prolonged recovery amid multiple challenges

Aviation industry faces prolonged recovery amid multiple challenges
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Stephanie Pope Boeing's Chief Operating Officer, The Boeing Company; Executive Vice President; President and CEO, Boeing Commercial Airplanes | Boeing Website

The aviation industry is grappling with a series of challenges that experts believe will take years to resolve. Boeing, a major player in the sector, continues to face production setbacks and safety issues. These difficulties are compounded by geopolitical tensions, supply chain disruptions, and sustainability concerns.

Experts warn that "many years will be required to address these problems because no easy solutions exist." The International Air Transport Association (IATA) predicts that supply chain issues will affect airlines through 2025. The pandemic has exacerbated these problems, leading to aircraft delivery delays due to worker shortages and limited raw materials.

Boeing's ongoing production challenges have forced airlines like Malaysia Airlines to cut capacity by 20% due to unreliable components and engines. Some loyal Boeing customers, such as Transavia and United Airlines, are now considering Airbus as an alternative supplier. However, Airbus alone cannot meet the global demand for airliner deliveries in the coming years.

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Boeing's executive changes and acquisition of Spirit AeroSystems are not expected to yield significant improvements until late 2025. The company has been operating without financial profit since 2018, with recent strikes adding pressure on its resources.

Government support for airlines may also diminish in the future. Experts suggest handling airline problems through bankruptcy procedures rather than government bailouts. Past interventions have led to unfair competition and increased public debt.

Geopolitical instability remains a concern for the aviation industry in 2025. Conflicts in Eastern Europe and the Middle East have altered flight paths, increasing costs for European airlines bypassing Russian airspace. Fuel price volatility further complicates operations for international carriers.

The aviation sector is also struggling with workforce stability amid a talent shortage. Companies are investing in better pay and training programs while enhancing quality control systems to retain skilled employees.

Sustainability efforts continue but achieving 'green' mainline aircraft operations is still far off. Hydrogen use, battery technology implementation, and sustainable alternative fuel adoption are key strategies being explored. ZeroAvia completed testing of its hydrogen-electric engine Dornier 228 in February 2025, while American Airlines reached an agreement with ZeroAvia for potential acquisition of hydrogen-electric engines.

Despite promising technologies like Sustainable Aviation Fuel (SAF), which entered commercial operations through United Airlines in March 2016, the path toward sustainable aviation remains complex and gradual.

Organizations Included in this History
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