Why Boeing’s woes could drive up airline prices for consumers

Boeing’s troubles since the blow to the doors of United Airlined have been constant – now travelers are facing canceled routes and fare increases this summer.

Since a door plug blew out of a Boeing 737 Max during an Alaska Airlines flight in January, Boeing has lurched from crisis to crisis — and its stock has fallen by a quarter.

While they investigate what went wrong, federal investigators have limited production of 737 Max planes — meaning U.S. airlines won’t get all the planes expected before the summer.

A shortage of aircraft means airlines will not be able to offer as many flights, an expert says. It also means that prices will rise as demand for remaining flights increases.

So far this year, Boeing has delivered just 42 planes to customers, despite a backlog of more than 4,700 orders.

Southwest previously expected 79 737 Max planes this year, but that forecast was reduced to 46

US airlines typically use the Boeing 737 Max for domestic flights, as well as some international routes to destinations in North America, Central America and the Caribbean.

So far this year, Boeing has delivered just 42 planes to customers, despite a backlog of more than 4,700 orders.

“Consumers may not have as many flights and airlines may not be able to offer as many flights.” Henry Harteveldt, aviation analyst at Atmosphere Research Group, told CBS MoneyWatch.

“Airlines are indicating that summer demand looks good, and that suggests to me that airfares would be higher anyway,” Harteveldt added.

‘But if an airline does not have all the aircraft it expects to have and therefore cannot operate all flights at all capacity, there is a chance that airfares will be higher than they would otherwise be.’

Southwest Airlines – one of the biggest buyers of the 737 Max – last week said in a file that Boeing had previously recommended delivering 79 planes this year, but cut that forecast to just 46.

Earlier this month, United told staff in an internal memo seen by CNBC that they would suspend hiring of new pilots until May and June “due to the continued certification of new aircraft and production delays at Boeing.”

“As you know, United has hundreds of new aircraft on order and while we remain on track to become the fastest-growing airline in the industry, we will not grow as quickly as we thought in 2024 due to continued delays at Boeing,” executives wrote.

A Boeing 787 flying from Sydney to Auckland took a terrifying dive last week after a flight attendant serving a cockpit meal accidentally pressed a switch on the pilot’s seat

United expected 43 Boeing 737 Max 8 and 34 Max 9 models this year, but now expects only 37 and 19, respectively, according to a company file.

The company also told Boeing to stop production of 737 Max 10 jets it had previously ordered.

Meanwhile, Ryanair expected to receive 57 aircraft in June but is now expected to receive only 40. CEO Michael O’Leary recently said he was “very disappointed with these latest delivery delays from Boeing” ahead of the summer travel peak.

As a result, the airline said it would be forced to make “minor schedule changes” that would reduce frequencies on existing routes.

Boeing’s problems worsened last week after a 787 Dreamliner flying to New Zealand went into a nosedive after a problem with the pilot’s seat caused it to fall onto the controls.

On Friday, another Boeing-built United Airlines plane was grounded after it was found to be missing a panel after landing after a flight.

The aircraft is a Boeing 737-824 and despite the missing part it landed successfully at Medford Airport in Oregon.

No injuries were reported, Jackson County Airport Director Amber Judd said, adding that the flight originated from San Francisco.

She reiterated that the plane was not a new aircraft, contrary to the series of incidents in recent months.