$11 billion supply chain setback for airlines in 2025| News

$11 billion supply chain setback for airlines in 2025

News: Global airlines are facing over $11 billion in additional costs in 2025 due to ongoing supply chain disruptions, according to an IATA and Oliver Wyman report. The five-year crisis—driven by labor, parts, and material shortages—has led to higher fares and flight cancellations.

The biggest costs include $4.2 billion in extra fuel from keeping older planes flying, $3.1 billion in maintenance, $2.6 billion in engine leasing, and $1.4 billion in spare parts.

IATA’s Willie Walsh raised concerns over supplier dominance and limited competition in the aerospace aftermarket, hinting at possible regulatory review.

With airlines’ margins at 6.7% versus suppliers’ 20%+, IATA warned that supply chain pressures will continue to weigh on the industry through the decade.