Boeing: Gulf airlines maintain aircraft orders despite regional conflict
Boeing has stated that Gulf airlines have not altered their aircraft order and delivery schedules this year due to the ongoing conflict involving Iran. The manufacturer maintains that the long-term growth outlook for these carriers remains intact. Kuljit Ghata-Aura, Boeing’s president for the Middle East, Turkey and Africa, told The National that regional customers remain committed to their fleet expansion plans. He attributed this to the airlines' business models as global aviation hubs and their resilience against short-term disruptions, such as fuel price volatility and fluctuating travel demand. While acknowledging significant financial and operational pressures, Ghata-Aura noted that there have been no discussions regarding the restructuring of orders or deliveries. With over 930 Boeing aircraft in the regional backlog—representing approximately 14 percent of the company's total commercial backlog—no significant delays or supply chain disruptions affecting current schedules have been reported. Since the start of 2026, Boeing has delivered over 12 aircraft to Middle Eastern carriers, including the first two 787 Dreamliners to Saudi Arabia’s Riyadh Air in June. Emirates president Tim Clark also confirmed to Reuters at the Farnborough Airshow in July that the airline does not intend to delay its orders, with the expansion of Dubai’s Al Maktoum International Airport remaining on track for 2032. Despite this, escalating military tensions have disrupted regional aviation. Following US strikes on targets in Iran, Tehran targeted US positions in Bahrain, Kuwait, and Jordan, undermining a temporary peace agreement signed in June. The European Union Aviation Safety Agency extended its warning to avoid airspace over Bahrain, Kuwait, Qatar, the UAE, and Oman until 31 August, while issuing a separate warning for Jordanian airspace due to unpredictable military developments. The International Air Transport Association (IATA) reported on 30 July that international travel demand in the Middle East in June was weak but improving. Demand fell 14 percent year-on-year, capacity dropped 11 percent, and load factors reached 76.3 percent, though the rate of monthly decline has halved since April. Regional carriers demonstrated confidence at the Farnborough Airshow, with Riyadh Air exercising options for 28 Boeing 787s and upgrading 20 to the larger 787-10 model. The airline also confirmed an order for six Airbus A350-1000s, bringing its total firm orders for that model to 31. Saudi low-cost carrier flynas also firmed up an order for 25 additional Airbus aircraft, increasing its total commitment to 235. Boeing’s 2026 Commercial Market Outlook forecasts 43,625 new jet deliveries globally by 2045, with half intended to replace older fleets with more fuel-efficient models. Airbus, in its July forecast, revised its figure down by one percent to 42,060, citing the conflict and trade tensions as factors. Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, noted in June that delaying deliveries due to conflict would be costly in the long term given the multi-year waitlists at manufacturers. Ghata-Aura added that Boeing is engaged in practical discussions with airlines facing difficult operating conditions, focusing on flight path optimization, access to spare parts from Boeing’s Dubai hub, and technical fleet management advice. He emphasized that Boeing is increasing its efforts in the region to create long-term value, including maintaining spare parts flow and investing in local aerospace infrastructure. While the stability of the Strait of Hormuz remains a concern for the industry, Ghata-Aura stated that Boeing’s supply chain benefits from a diverse network and strategic reserves, including partnerships in the UAE with Strata and EPI for the supply of composite and metallic components for the 777 and 787 programmes.