Will increasing fuel prices revitalize new aircraft sales?

By Bjorn Fehrm Subscription Required
Introduction
August 2, 2018, © Leeham News.: As outlined in our Monday article the changing fuel price is affecting fleet plans. With increasing cost of fuel one would expect the airlines to order more new fuel-efficient aircraft. The reaction from some US carriers has been the opposite, deferral of deliveries of new aircraft. While this might be a short-term reaction, long-term rising fuel prices will favor new, fuel-efficient aircraft. The fuel price level when this happens is today’s subject. Summary:
  • There are more factors than fuel and capital costs which influence buy new or keep old fleet, but the fuel and capital costs are the key variables.
  • We also explore if there is a difference in crossover fuel price between Narrowbody or Widebody fleets.

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