News
Supply chain challenges estimated to cost airlines US$11 billion in 2025
October 14th 2025
Delays in the production of new aircraft and the supply of aircraft parts are forecast to add US$11 billion to the bottom lines of the world’s airlines this year, the International Air Transport Association (IATA) and consultancy, Oliver Wyman, report. Read More » Airlines are continuing to fly older airplanes because the slow pace of new aircraft deliveries has left them with no alternative but to keep operating mature aircraft for longer than planned. As a result, they are paying excess fuel costs, higher maintenance expenses, increased engine leasing costs and surplus inventory holding costs. IATA said the global backlog for commercial aircraft reached an historic peak of 17,000 in 2024, higher than the average backlog of 13,000 aircraft from 2010 to 2019. "There is no simple solution to resolving this problem, but there are several actions that could provide some relief," IATA director general, Willie Walsh, said. "To start, opening the aftermarket would help by giving airlines greater choice and access to parts and services. In parallel, greater transparency about the supply chain would provide airlines with the necessary data to plan around blockages helping to ease underlying bottlenecks." Oliver Wyman partner, Matthew Poitras, said: "We see an opportunity to catalyze an improvement in supply chain performance that will benefit everyone, but this will require collective steps to reshape the structure of the aerospace industry and work together on transparency and talent."
