Airlines desperately want more planes — but Boeing and Airbus can't keep up

• Boeing's quality issues and Airbus' supply chain problems have created a global jet shortage.
• American Airlines cut routes amid delayed 787s, while Ryanair lowered its capacity outlook for 2025.
• US budget carrier Breeze delayed route launches due to Airbus jets coming up to two months late.

Production struggles at Boeing and Airbus have forced airlines around the world to cut routes and spend more to keep older planes flying, even as travel demand soars.

Airlines reeling from delays have looked to aircraft lessors to fill the gaps, but likely won't see much relief in 2025 as Boeing works to get its assembly lines back on track.

The embattled manufacturer delivered 348 planes in 2024, down from 528 the year prior. Its rival, Airbus, nearly doubled that at 766 aircraft deliveries.

"The first half is going to reflect our gradual, steady restart of the factory, and the second half is likely going to benefit from achieving higher production rates," Boeing's chief financial officer Brian West said in January of the year ahead. "2025, in some ways, could look like 2023, maybe a bit better if things go our way."

Boeing's 737 Max production is still capped

A federally mandated cap on production of 737 Max planes is hampering deliveries for waiting airlines.

Irish low-cost carrier Ryanair, for example, cut its traffic target for 2025, and Southwest Airlines said it expects up to 100 fewer Max jets than its agreed-upon 136.

American Airlines, United Airlines, and budget carrier Allegiant Air have similarly cut their 2025 delivery expectations and are couching their schedules and crew staffing.

This is a particular nuisance as airlines try to capitalize on booming travel demand. Lower seat capacity may also result in higher ticket prices for customers.

Two new 737 Max variants — the Max 7 and the Max 10 — are still waiting on certification. It's unclear when they may enter service.

After the 2024 door plug blowout, United removed the Max 10 from its 2025 plans, while Southwest cut the Max 7 from its 2024 capacity. Delta Air Lines CEO Ed Bastian said in March its on-order Max 10s could be delayed to 2027.

Overall, airlines appear optimistic about Boeing's turnaround.

United's CFO, Mike Leskinen, said in a January earnings call that the airline is bullish about the Max 10 as Boeing starts to "make some real progress in improving their business."

Southwest and Allegiant also appear higher on Boeing after both received more Max planes than expected in the fourth quarter.

"[Boeing] appear[s] to be on a good path, and we're feeling more optimistic," Southwest CEO Bob Jordan said. "Regardless, we think it's prudent to hedge our bets."

Boeing CEO Kelly Ortberg said the company wants to increase Max production to 42 a month by the end of 2025, which can only happen if Boeing meets FAA-mandated performance standards.

Late 787 Dreamliners are forcing route cuts

Boeing's popular widebody 787 Dreamliner has faced a slew of quality problems.

American cut three planned 787 routes to Europe this summer and reduced frequencies on two others, data from Cirium shows. The delays have already forced it to delay the launch of its new Flagship business class, which is expected later this year.

This is particularly bad news for American as it tries to keep up with the growing transatlantic market, which has been a boon for United and Delta.

In the Middle East, Riyadh, a new airline hoping to boost Saudi Arabia's tourism and economy, has postponed its launch from early 2025 to the third quarter because it cannot obtain the needed 787s.

Boeing said it expects to get some backlogged Dreamliners out the door in early 2025 as it shuts down the designated "shadow factory" — assembly lines that address quality problems on already-built jets.

Boeing's newest plane is six years late and counting

Boeing said in its earnings call that it still expects to launch its long-delayed 777X in 2026 — six years after the plane's initially expected 2020 service entry.

Emirates has been vocal about the 777X production and design setbacks.

President Tim Clark said in November the airline should have already had 85 in its fleet and has subsequently spent more money flying older planes longer to cope.

About 500 orders have been placed for the 777X from over a dozen global carriers, though none are in the US.

The plane restarted test flights in January after a five-month pause.

Airbus planes face supply chain challenges

While Boeing remains the most prominent cause of airline delivery delays worldwide, Airbus has faced "persistent specific supply chain issues mainly in engines, aerostructures, and cabin equipment."

This has impacted carriers like Spirit Airlines and JetBlue Airways in 2024, and is expected to keep planes grounded through 2025.

Latvian carrier airBaltic recently announced thousands of summer flight cuts due to delayed Airbus A220 engines from supplier Pratt and Whitney.

Breeze Airways' CEO David Neeleman told Business Insider in January that some of the budget carrier's A220s are coming "one or two months late," adding the airline is also facing engine shortages.

The A220 delays pushed back the launch of some Breeze routes from spring 2025 to fall.

"It's been a little frustrating," Neeleman said. "I still can't figure out how you have supply chain issues four years after Covid."