Airlines are becoming more hesitant to commit to new aircraft purchases as ongoing conflict in Iran drives up fuel costs and creates uncertainty in the aviation industry, according to the head of Brazilian aircraft manufacturer Embraer.
Francisco Gomes Neto, who serves as CEO of the company, shared these observations during an interview on Saturday. He explained that while the aircraft builder hasn’t experienced requests to postpone deliveries or seen its active sales efforts slow down, there’s growing hesitation when it comes to additional aircraft commitments.
“Some companies that could be exercising previously signed options are leaving that a bit further ahead to better understand how the situation will evolve,” Gomes Neto explained during the International Air Transport Association’s annual summit taking place in Rio de Janeiro.
The executive pointed to rising jet fuel costs as a key factor behind the cautious approach airlines are taking toward expanding their fleets. These increased fuel expenses stem from the ongoing war in Iran, which has created ripple effects throughout the global aviation sector.
