Key facts
- Deferring jet orders due to the Middle East conflict and higher fuel prices would be costly for airlines long-term.
- IATA's regional VP for Africa and the Middle East, Kamil Al-Awadhi, does not expect the war to affect aircraft orders from Middle Eastern carriers.
- Middle Eastern airlines are significant buyers of jets from Boeing and Airbus.
- Long waiting times for aircraft make deferrals unwise, according to Al-Awadhi.
- A recent attack in Kuwait damaged a terminal used by foreign carriers, with repairs estimated to take at least a year.
Kamil Al-Awadhi, regional vice president for Africa and the Middle East at the International Air Transport Association (IATA), stated that deferring jet orders due to uncertainty and higher jet fuel prices stemming from the conflict in Iran would be an unwise decision for Middle Eastern carriers, potentially leading to significant long-term costs. He indicated that he does not anticipate the ongoing conflict and associated cost increases to impact aircraft orders from the region's airlines, which are major customers for Boeing and Airbus. Al-Awadhi highlighted the lengthy waiting times for new aircraft, particularly Airbus's latest single-aisle planes, as a key factor making deferrals impractical. He described the current situation as a 'hiccup' but affirmed that airlines plan to continue with their existing strategies. Global airlines are reportedly responding to higher costs by reducing flights and increasing fares. Al-Awadhi also expressed concern over a recent Iranian attack in Kuwait that damaged a terminal used by foreign carriers, estimating that repairs could take at least a year and questioning the operational capacity for other airlines flying into Kuwait. He suggested that Kuwait might need to expedite the completion of a new terminal or allow foreign airlines to use facilities currently occupied by domestic carriers like Kuwait Airways.