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ONGOING delays in aircraft production and the delivery of critical spare parts are projected to cost the global aviation industry in excess of US$11 billion (RM46.5 billion) in 2025, the International Air Transport Association (IATA) warned today.
Citing a joint report with management consultancy Oliver Wyman, IATA said backlogs in the commercial aircraft supply chain have reached historic highs, with more than 17,000 aircraft orders pending fulfilment as of 2024 – far exceeding the pre-pandemic average of 13,000 per year.
The study, titled Reviving the Commercial Aircraft Supply Chain, identified four key factors contributing to the cost burden: an estimated US$4.2 billion in excess fuel costs due to continued reliance on older, less fuel-efficient aircraft; US$3.1 billion in additional maintenance expenses; US$2.6 billion from increased engine leasing costs; and US$1.4 billion in excess inventory storage.
“These supply chain bottlenecks are forcing airlines to reassess fleet plans and retain older aircraft in service for longer,” IATA said in a statement. “At the same time, they are preventing carriers from deploying sufficient aircraft to meet surging passenger demand.”
Passenger demand rose by 10.4 per cent in 2024, outpacing capacity growth of 8.7 per cent and pushing load factors to a record 83.5 per cent. That upward trend is expected to continue into 2025.
IATA Director General Willie Walsh said the aviation sector relies heavily on a dependable supply chain to efficiently maintain and expand its fleet.
“There are no simple fixes for this issue, but some steps can provide relief,” he said. “Opening up the aftermarket would offer airlines greater choice and access to spare parts and services.”
He added that “greater transparency on supply chain conditions” is crucial, giving airlines the data they need to plan around disruptions while allowing original equipment manufacturers (OEMs) to ease bottlenecks on production lines.
“This is a challenge that must be addressed across the entire aerospace ecosystem to ensure the industry can meet rising demand safely and sustainably,” Walsh said. - October 14, 2025