The CEO of Starlux Airlines (JX, Taipei Taoyuan) says the carrier is being hit by Airbus delivery delays and waning passenger demand on its US routes, something CEO Glenn Chai attributes to economic uncertainty caused by tariffs imposed by the administration of US President Donald Trump.
Speaking to Bloomberg, Chai said Airbus had revealed it will deliver fewer aircraft than originally planned. Starlux has 27 Airbus aircraft on order, and Chai says the airline now expects delivery of a single A350-1000 and two A330-900Ns over the remainder of the year. Two A350-900s have already arrived this year. But the overall five aircraft are four fewer than originally scheduled.
Chai says that the shortfall means a planned capacity growth of around 50% this year will be more like 20-30%. Airbus expects problems with delivery delays for all customers to last another three years as it grapples with supply chain problems. While some parts of the Airbus supply chain have improved, problems persist with engines and some structural parts. The manufacturer is reportedly informing customers of six-month delays for aircraft originally due for delivery in 2027 or 2028.
Starlux Airlines has six A321-200NX, three A330-900Ns, eight A350-1000s, and ten A350Fs on order. When delivered, they will almost double its current 28-strong fleet, which numbers thirteen A321-200NX, five A330-900Ns, and ten A350-900s.
The airline's long-haul market comprises four US destinations, Seattle Tacoma International, San Francisco, Los Angeles International, and Ontario International. Chai says bookings are down on these routes. “This summer, we see the impact already,” he said. "People are feeling uncertain about future economic growth. They are still booking but they postpone to the fourth quarter.”
However, Chai adds that he expects passenger uncertainty to ease towards the end of the year, once the tariff wheeling and dealing settles down.
Starlux's current schedule sees it flying to Seattle and San Francisco daily, Ontario 4x weekly, and Los Angeles 11x weekly. All the routes are serviced by A350-900s, which together provide 17,136 weekly seats on the Taiwan-United States country pair.
