A senior official from the International Air Transport Association (IATA) has cautioned Middle Eastern airlines against postponing aircraft orders despite rising costs and market uncertainty linked to the war in Iran, warning that such delays could become financially disadvantageous over time.
Kamil Al-Awadhi, IATA’s Regional Vice President for Africa and the Middle East, said he does not anticipate that the ongoing conflict or increased operating costs will significantly disrupt aircraft purchasing plans among carriers in the region. Speaking to reporters on Saturday during the association’s annual summit in Rio de Janeiro, he noted that Middle Eastern airlines remain among the largest global buyers of aircraft from manufacturers Boeing and Airbus.
Al-Awadhi said deferring aircraft orders is “not wise,” arguing that delays could ultimately increase costs for airlines due to extended waiting periods for new aircraft deliveries. He added that current production backlogs at manufacturers mean operators already face long lead times, particularly for the latest-generation single-aisle aircraft.
According to him, it could take several years for airlines to receive newly ordered planes, making postponements potentially counterproductive. He said most carriers are expected to continue with their existing fleet expansion strategies despite temporary disruptions.
“The plan is to continue where we're going … even though this is a hiccup,” he said.
Across the global aviation sector, airlines have been adjusting operations by reducing flight frequencies and increasing fares and ancillary charges in response to higher costs. This comes even as parts of the Middle East aviation network have experienced security risks, including airspace disruptions linked to the conflict.
Al-Awadhi also expressed concern over recent developments in Kuwait, where an attack earlier in the week at an airport killed one person and damaged a terminal used by international carriers. He said preliminary assessments suggest the affected infrastructure could take at least a year to fully restore.
“Looking at the damage from the videos and pictures that were sent to me, it’s going to take ages,” he said. “So my concern is, will the other carriers be able to go into Kuwait?”
He added that authorities may need to accelerate completion of sections of a new airport terminal or temporarily reassign international operations to facilities currently used by domestic airlines such as Kuwait Airways. He described the situation as one that would require complex logistical and operational decisions to resolve.
Source: Reuters