US EditionAirlines 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.
- On October 14, the International Air Transport Association and Oliver Wyman released a joint study estimating over $11 billion in extra costs for global airlines in 2025.
- A supply‑chain analysis shows delays stem from a supply‑chain structure favouring aftermarket revenue and external disruptions like geopolitical tensions and raw‑material shortages.
- The study quantifies the costs as $4.2 billion excess fuel, $3.1 billion additional maintenance, $2.6 billion engine leasing and $1.4 billion spare‑parts inventory this year.
- Airlines are reevaluating fleet strategies and, with passenger demand increase of 10.4% outpacing 8.7% capacity growth, are using wet leases and grounding aircraft in India.
- The report urges industry reforms including opening the aftermarket, boosting transparency, shared parts pools, and expanding repair capacity to unlock $940 billion in efficiencies, aiding a $1.007 trillion industry target for 2025.
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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
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.
Supply chain disruptions to cost airlines over $11b in 2025, says IATA - NewsTmes.com.ng
The International Air Transport Association (IATA) has warned that persistent supply chain challenges in the global aerospace industry could cost airlines more than $11 billion in 2025. In a new joint report released yesterday, with global management consultancy Oliver Wyman, titled “Reviving the Commercial Aircraft Supply Chain,” IATA said the ongoing disruptions have delayed the … The post Supply chain disruptions to cost airlines over $11b in…
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