CHICAGO, April 9 (Reuters) - The global airline industry

is facing a summer squeeze, with travel demand expected to

surpass pre-pandemic levels while aircraft deliveries drop

sharply due to production problems at Boeing ( BA ) and Airbus

.

Air carriers are spending billions on repairs to keep flying

older, less fuel-efficient jets, and paying a premium to secure

aircraft from lessors. But some carriers are still being forced

to trim their schedules to cope with the lack of available

planes. At the same time, the number of travelers globally is

set to hit historic levels, with 4.7 billion people expected to

travel in 2024 compared with 4.5 billion in 2019.

"We can expect a strong performance from airlines throughout

the summer with some particularly high airfare," said John

Grant, senior analyst at travel data firm OAG.

Last December, the International Air Transport Association

(IATA) had predicted a 9% annual growth in global airline

capacity this year. That estimate looks optimistic following

Boeing's ( BA ) safety crisis.

Passenger carriers will receive 19% fewer aircraft this year

than they expected because of production issues at Boeing ( BA ) and

Airbus, said Martha Neubauer, senior associate at AeroDynamic

Advisory.

U.S. carriers will receive 32% fewer aircraft than planned a

year ago because several airlines depend on Boeing's ( BA ) 737 MAX

planes, Neubauer said. Boeing's ( BA ) production has been curbed after

a January mid-air panel blowout.

Boeing ( BA ) is reeling from a sprawling crisis that erupted after

the Jan. 5 Alaska Airlines blowout. Regulators have put

a cap on production of the 737 MAX, but the company is not

hitting even that level.

As many as 650 Airbus A320neo jets could be grounded in the

first half of 2024 for inspections to deal with a flaw with RTX

Corp's ( RTX ) Pratt & Whitney engines, RTX said last year.

In Europe, low-cost airline Ryanair has cut some

routes. In the United States, United and Southwest ( LUV )

have cut back flying and adjusted hiring and staffing

plans.

LEASING MARKET BOOMS

Analysts expect capacity at most U.S. carriers in the second

quarter to grow at a slower pace than a year ago. Airlines will

update their growth plans and explain how they will offset

capacity constraints when they report quarterly results,

starting on Wednesday with Delta Air Lines ( DAL ).

Due to the shortage of new planes, the aircraft leasing

market is booming. Data from Cirium Ascend Consultancy shows

that lease rates for new Airbus A320-200neo and Boeing 737-8 MAX

aircraft have hit $400,000 per month, the highest since

mid-2008.

Airlines are spending 30% more on aircraft leases than

before the pandemic, said John Heimlich, chief economist at

Airlines for America (A4A) that represents major U.S. carriers.

They are also holding on to jets that are past their useful

economic lives and require heavy maintenance that now takes

several months, Heimlich said. Repair costs at United, Delta

and American were up 40% last year from 2019.

Increased leasing, repair and labor costs will bite in to

profit despite the high demand, Heimlich said. U.S. passenger

airlines posted a pretax margin of 4.5% last year, with the bulk

of contribution coming from Delta and United.

Fewer Americans are planning to travel on a plane this

summer compared with a year ago due to high inflation, a survey

by travel website the Vacationer showed. Airline fares are down

year-on-year, but have been rising month-on-month.