Global Airlines Struggle with Supply Chain Woes: Aircraft Deliveries Fall Short, Costs Soar

The International Air Transport Association (IATA) has flagged persistent supply chain challenges as a critical issue impacting airlines worldwide, with effects expected to last into 2025. These hurdles are driving up costs, limiting growth, and delaying the adoption of fuel-efficient aircraft, exacerbating challenges for an industry striving for sustainability. Rising Fleet Age and Delivery Delays IATA, representing 340 airlines that account for over 80% of global air traffic, revealed that the average age of the global fleet has reached a record 14.8 years, compared to the 1990-2024 average of 13.6 years. Aircraft deliveries are significantly lagging behind forecasts: 2024: Estimated 1,254 deliveries—30% below initial predictions. 2025: Projected to rise to 1,802 deliveries, still far short of the earlier forecast of 2,293. The backlog for new aircraft now stands at an alarming 17,000 planes, doubling the pre-pandemic backlog average. At current production rates, it would take 14 years to clear, compared to six years during 2013-2019. However, delivery rates are expected to improve gradually. Aircraft on Ground (AOG) and Revenue Losses Currently, 14% of the global fleet is grounded, with 2% parked for engine inspections. Willie Walsh, IATA’s Director General, warned that