Aircraft lessor Avolon sees supply chain issues persisting into 2025

Aircraft manufacturers are stabilising production runs but problems will likely persist in the supply chain as they ramp up deliveries in the next two years, the head of the world's third-largest aircraft lessor said on Thursday. A rapid post-pandemic recovery in air travel has left planemakers and smaller suppliers struggling to keep up with demand amid rising costs, parts shortages and a scarcity of skilled labour. "We continue to see increased levels of stabilisation coming to the production runs," Avolon CEO Andy Cronin told Reuters in a telephone interview, adding not to underestimate the challenges ahead in the next two years. "While we're continuing to try to ramp (production) very aggressively, we'll continue to see problems somewhere in the supply chain." Avolon on Thursday posted a 14% year-on-year rise in second quarter lease revenue to $613m. Cronin said this showed increasing demand for planes across the globe, even as parts of Asia and China recover a little bit slower than anticipated. The Dublin-based firm committed last month to buy 20 Airbus A330neo aircraft, and said it is already in advanced talks on placing some of the new Airbus planes. Its Airbus purchase followed another recent order for 40 Boeing 737 MAX 8 planes.<br/>