The International Air Transport Association (IATA) and consulting firm Oliver Wyman have released a joint report, Reviving the Commercial Aircraft Supply Chain, warning that ongoing aerospace supply chain bottlenecks could cost airlines more than $11 billion in 2025.
Delays in aircraft and parts production have forced airlines to extend the life of older, less efficient aircraft, driving up costs across the industry. The estimated losses include:
- $4.2 billion in excess fuel costs from operating older jets
- $3.1 billion in added maintenance expenses
- $2.6 billion in higher engine leasing costs, with lease rates up 20–30% since 2019
- $1.4 billion in inventory holding costs for spare parts
The global aircraft backlog reached a record 17,000 units in 2024, and with passenger demand outpacing capacity, the disruptions are constraining growth. IATA Director General Willie Walsh called for greater aftermarket openness, transparency, and data sharing to help airlines plan and reduce costs.
The report outlines four key actions for the industry:
- Open aftermarket access and diversify parts sourcing.
- Enhance supply chain visibility to identify and mitigate risks promptly.
- Leverage data and predictive maintenance to optimise resources.
- Expand repair and parts capacity through advanced manufacturing and faster approvals.
IATA and Oliver Wyman stress that only coordinated collaboration among OEMs, suppliers, lessors, and airlines can rebuild resilience and restore balance to the aerospace supply chain.