Aviation Industry Confronts Unprecedented Supply Chain Challenges with Potential $11B Loss in 2025
The aviation industry is grappling with unprecedented supply chain challenges that could cost airlines more than $11 billion in 2025, according to a joint study by IATA and Oliver Wyman released this week.
The financial impact stems from four critical areas:
- Excess fuel costs ($4.2 billion) from operating older, less efficient aircraft due to delivery delays
- Additional maintenance costs ($3.1 billion) as the global fleet ages
- Increased engine leasing costs ($2.6 billion) with lease rates rising 20-30% since 2019
- Surplus inventory holding costs ($1.4 billion) as airlines stockpile spare parts
Willie Walsh, IATA’s Director General, emphasized that airlines are experiencing “unprecedented waits for aircraft, engines and parts” with unpredictable delivery schedules limiting their ability to meet growing consumer demand. Despite these challenges, passenger demand rose 10.4% in 2024, exceeding capacity expansion of 8.7%.
Source
Move to the category: