Middle East conflict continues to escalate, airlines reassess expansion plans
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Gelonghui, March 10|According to Bloomberg, the ongoing escalation of conflict in the Middle East has caused oil prices and aviation fuel costs to soar, forcing global airlines to reassess their expansion plans. Sources indicate that some airlines in the Middle East and Asia have temporarily shelved negotiations for the purchase and leasing of large aircraft, including Lion Air, Garuda Indonesia, and AirAsia, all of which are reevaluating their future aircraft delivery schedules. Under the current circumstances, airlines may invoke force majeure clauses to suspend the fulfillment of aircraft delivery contracts in order to avoid paying penalties for delayed aircraft receipt. Jefferies analysis points out that approximately 14% of Boeing's current orders come from Middle Eastern airlines, with nearly half of the 777X wide-body aircraft orders and about one-third of the 787 Dreamliner orders coming from this region, highlighting the particularly significant impact of the conflict on Boeing.
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