Indian Airlines To Face Supply Chain Woes & Rising Costs In 2025

Post -pandemic, the performance of the Indian airlines might have improved, however, its progress is effectively capped by supply chain issues. Indian airlines, with a combined order book of nearly 2,000 aircraft, are facing significant global supply chain disruptions, including raw material shortages (like titanium), engine production delays, and labour shortages. Geopolitical tensions, such as the Russia-Ukraine war, have further disrupted the supply of critical materials. The market will continue to face the supply chain woes and rising costs, all of which will impact fleet expansion and operational efficiency. The International Air Transport Association (IATA) predicted severe supply chain issues to continue to impact airline performance into 2025, raising costs and limiting growth. Globally, aircraft deliveries have fallen sharply from the peak of 1,813 aircraft in 2018. The estimate for 2024 deliveries was 1,254 aircraft, a 30