Aircraft supply chain crunch puts airlines under pressure

The global aviation industry is facing a major challenge as delays in aircraft and engine deliveries continue to disrupt airline operations and increase costs.

A new report by the International Air Transport Association (IATA) and global consultancy Oliver Wyman, titled “Reviving the Commercial Aircraft Supply Chain”, highlights how these supply chain problems are affecting airlines and maintenance companies worldwide and what can be done to fix them.

Airlines forced to fly older planes

According to the report, aircraft manufacturers are struggling to deliver planes on time because of shortages of raw materials, skilled labour, and components. As a result, many airlines are being forced to keep older aircraft in service for longer than planned.

The study shows that the global backlog of commercial aircraft has reached a record high of more than 17,000 planes, far higher than the average of 13,000 per year between 2010 and 2019.

This situation is causing serious financial strain for airlines. In 2025 alone, delays and shortages are expected to cost the global airline industry over $11 billion, mainly due to:

Higher fuel bills (about $4.2 billion), since older planes consume more fuel.

Increased maintenance costs (about $3.1 billion), because older aircraft need more repairs and checks.

Engine leasing costs (about $2.6 billion), as airlines rent engines to replace those stuck in long maintenance queues.

Extra inventory expenses (about $1.4 billion), as airlines buy and store more spare parts to avoid disruptions.

A ripple effect on maintenance and repair

As aircraft deliveries slow, the maintenance, repair, and overhaul (MRO) industry is stepping in to help airlines keep their fleets flying. The global shortage of new aircraft has led to a rise in demand for MRO services, as airlines rely on regular maintenance to extend the lifespan of their older jets.

Why is the supply chain struggling?

The supply chain troubles began during the pandemic, but deeper issues have kept them alive. Aircraft makers and suppliers are still coping with geopolitical tensions that affect the flow of materials like titanium and speciality alloys, labour shortages, especially of technicians and engineers, and overdependence on a few large manufacturers (OEMs) who control the flow of parts and maintenance approvals.

These issues have disrupted the traditional ‘just-in-time’ supply model. Today, airlines and MROs are forced to work on a “just-in-case” approach, stocking more parts and building extra capacity to protect themselves from future delays.

IATA calls for greater transparency

IATA’s Director General Willie Walsh said the current crisis shows the need for a more transparent and open system. “Airlines depend on a reliable supply chain to operate and grow their fleets efficiently,” Walsh said. “We have unprecedented waits for aircraft, engines, and parts. Opening the aftermarket would help by giving airlines greater choice and access to parts and services.”

The report recommends four key actions for the industry:

• Allow MROs and independent suppliers better access to repair data, spare parts, and certification.
• Share data across all levels to identify bottlenecks early.
• Adopt predictive maintenance and shared digital platforms to reduce downtime.
• Speed up repair approvals and promote the use of Used Serviceable Material (USM) and 3D-printed components.

Experts agree that solving the supply chain crisis will require collaboration among manufacturers, suppliers, and MROs. Matthew Poitras, a partner at Oliver Wyman, said the goal should be to build a more resilient and transparent system.

“Today’s aircraft are more advanced and fuel-efficient than ever, but supply chain challenges are hurting both airlines and manufacturers,” he said.

“The industry must work together, with better data, shared talent, and joint problem-solving to strengthen the entire system.”