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Airlines Face $11 Billion Supply Chain Hit in 2025: IATA
Supply chain disruptions are forcing airlines to keep older aircraft longer, adding $4.2 billion in fuel costs, $3.1 billion in maintenance, and $2.6 billion in engine leasing expenses.
- A joint IATA–Oliver Wyman study found that global airlines will face over $11 billion in additional costs in 2025, due to supply chain disruptions and delays.
- Industry sources point to a supply‑chain structure favouring aftermarket revenue and geopolitical tensions, raw‑material shortages, plus defence industry and governments increasing military spending.
- Broken down, the extra costs include $4.2 billion excess fuel, $3.1 billion additional maintenance, $2.6 billion engine leasing, and $1.4 billion spare‑parts inventory.
- With passenger demand outpacing capacity, airlines are reevaluating fleet strategies and resorting to wet leases and grounded aircraft in India.
- The report urges industry reforms including aftermarket access, transparency, shared parts pools, and workforce training to unlock $3.1 billion in efficiencies, according to Oliver Wyman partner Matthew Poitras.
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IATA warns supply chain woes to hit airline growth - BusinessWorld Online
By Ashley Erika O. Jose, Reporter SUPPLY CHAIN bottlenecks are expected to constrain the airline industry’s projected growth as aircraft production delays and rising maintenance costs weigh on carriers’ fleet expansion plans, the International Air Transport Association (IATA) said. “Challenges within the aerospace industry’s supply chain are delaying production of new aircraft and parts, resulting in airlines reevaluating their fleet plans and, …
Airlines Face $11 Billion Supply Chain Hit in 2025, IATA Says
·New York, United States
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Airlines face $11 billion supply chain hit in 2025: IATA
Global airlines face more than $11 billion in extra costs from supply chain disruption this year, a leading industry group said today, in a report likely to rekindle debate over competition in the $250-billion aerospace industry.
·Ireland
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Coverage Details
Total News Sources27
Leaning Left1Leaning Right3Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 17%
C 33%
R 50%
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