TBM Staff - Mumbai
The International Air Transport Association (IATA) has warned that severe supply chain disruptions will continue to challenge airlines through 2025. These issues are driving up costs, restricting growth, and impacting the industry’s environmental goals. Aircraft deliveries in 2024 are projected at 1,254 units, a 30% shortfall from expectations, while a record backlog of 17,000 planes threatens long-term fleet renewal. At current production rates, fulfilling these orders would take 14 years, double the pre-pandemic average.
Aging fleets now average 14.8 years, compared to 13.6 years pre-2020, increasing maintenance costs and reducing fuel efficiency. The number of parked aircraft remains 4% above pre-pandemic levels, with 2% grounded for engine inspections. Leasing rates for narrow-body aircraft have surged 20-30% from 2019 levels, exacerbating financial pressures. Willie Walsh, IATA’s Director General, highlighted the “triple whammy” of rising costs, reduced revenue opportunities, and environmental setbacks caused by supply chain bottlenecks.
Environmental progress has also stalled, with fuel efficiency unchanged from 2023 to 2024 at 0.23 litres/100 ATK, a regression from long-term improvement trends. Walsh criticised manufacturers for falling short of commitments, which has delayed fleet upgrades critical to achieving net-zero carbon emissions by 2050. Airlines now bear the brunt of emissions reduction efforts without sufficient support from suppliers.
As demand for air travel surges post-pandemic, airlines face immense pressure to grow while tackling these operational hurdles. IATA emphasises that resolving supply chain issues is essential not only for profitability but also for achieving the industry’s ambitious sustainability targets.
