The International Air Transport Association (IATA), in partnership with global management consultancy Oliver Wyman, has raised fresh concerns over mounting disruptions in the global aerospace supply chain that are threatening airline operations and costing the industry billions of dollars annually.

In a new joint report titled: ‘Reviving the Commercial Aircraft Supply Chain’, the two organisations warn that persistent production delays, parts shortages, and logistical bottlenecks have created a historic backlog of more than 17,000 aircraft—up from an average of 13,000 between 2010 and 2019. 

The ripple effect, they say, is being felt across the entire aviation ecosystem, forcing airlines to extend the use of older, less efficient aircraft and rethink their fleet renewal plans.

According to the study, these production bottlenecks are expected to cost airlines over $11 billion in 2025 alone. 

A combination of excess fuel consumption, mounting maintenance expenses, engine leasing challenges, and increased inventory holding costs are driving the financial burden. 

Beyond costs, the crisis is also constraining airlines’ ability to meet surging passenger demand. In 2024, global passenger traffic grew by 10.4 per cent, outpacing capacity growth of 8.7 per cent and pushing load factors to a record 83.5 per cent. 

IATA’s Director General, Willie Walsh, described the situation as unprecedented and warned that without urgent industry-wide reforms, the global air transport system could face prolonged inefficiencies.

“Airlines depend on a reliable supply chain to operate and grow their fleets efficiently,” he said.