Representative ImageThe International Air Transport Association (IATA) has highlighted ongoing aerospace supply chain bottlenecks as a major constraint on airline growth. Despite an increase in aircraft deliveries in late 2025 and anticipated production acceleration in 2026, demand is expected to surpass the availability of aircraft and engines. This mismatch is unlikely to normalise before 2031–2034 due to past delivery losses and a record-high order backlog.
Currently, delivery shortfalls have reached at least 5,300 aircraft, with the order backlog exceeding 17,000 aircraft—nearly 60% of the active fleet. This backlog equates to almost 12 years of current production capacity. The average fleet age has risen to 15.1 years, with aircraft in storage exceeding 5,000, despite the shortage of new aircraft.
Willie Walsh, IATA’s Director General, stated, “Airlines are feeling the impact of the aerospace supply chain challenges across their business. Higher leasing costs, reduced scheduling flexibility, delayed sustainability gains and increased reliance on suboptimal aircraft types are the most obvious challenges.”
The IATA and Oliver Wyman study estimates that supply chain bottlenecks will cost the airline industry over $11 billion (US$11 billion) in 2025. Excess fuel costs, additional maintenance expenses, increased engine leasing costs, and surplus inventory holding costs are the primary contributors.
To address these issues, the study suggests enhancing supply chain visibility, expanding repair and parts capacity, and leveraging data for predictive maintenance. These measures aim to reduce bottlenecks and improve the resilience and reliability of the supply chain.
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