The global airline industry is projected to lose more than $11 billion in 2025 as aircraft and parts delivery delays continue to disrupt operations, according to a new report by the International Air Transport Association (IATA) and consulting firm Oliver Wyman.
The study revealed that aircraft manufacturers are struggling to meet growing demand, with a record backlog of over 17,000 commercial aircraft in 2024 — far above the average of about 13,000 between 2010 and 2019.
According to the report, the production slowdown is forcing airlines to keep older, less fuel-efficient aircraft in service longer, leading to higher operational costs. The estimated financial hit includes $4.2 billion in additional fuel costs, $3.1 billion in maintenance expenses, $2.6 billion in engine leasing fees, and $1.4 billion from excess inventory holdings.
The shortage has also coincided with rising passenger demand. Global air travel surged by 10.4% in 2024, while available capacity grew by just 8.7%, pushing load factors to a record 83.5%.
The report attributed the persistent delays to geopolitical tensions, raw material shortages, labour constraints, and inefficiencies in the aerospace supply chain. It warned that unless addressed, these issues could deepen the supply-demand imbalance and further inflate airline costs.
To mitigate future risks, IATA and Oliver Wyman recommended stronger collaboration between airlines, manufacturers, and suppliers. Suggested measures include expanding repair and parts capacity, improving supply chain transparency, and leveraging predictive maintenance and data-sharing platforms.
They also called for a more open aftermarket system to give airlines access to alternative parts and repair options beyond those controlled by original equipment manufacturers (OEMs).
The report concluded that building a resilient aviation supply chain will require sustained investment in technology, skilled labour, and industry-wide cooperation to prevent future disruptions.
The global airline industry is projected to lose more than $11 billion in 2025 as aircraft and parts delivery delays continue to disrupt operations, according to a new report by the International Air Transport Association (IATA) and consulting firm Oliver Wyman.
