As Boeing (BA) grapples with persistent challenges in aircraft production, TD Cowen Senior Research Analyst Helane Becker joins Yahoo Finance Live to discuss the ripple effects on the broader airline industry.
Despite strong demand, she notes that the disruption to Boeing's manufacturing and delivery capabilities "limits growth" for airlines. Companies will be forced to limit workforce expansion, which will hamper service offerings. "Without a robust airline industry, it's very hard to have a robust economy," Becker warns.
Airlines are left with little choice but to "adapt" to Boeing's struggles, Becker explains: adjusting operations to limited aircraft supply will involve restructuring order books and reducing capacity.
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