Supply chain woes cost airlines $11B in 2025, says IATA chief

Supply chain disruptions in the aviation industry added at least $11 billion in extra costs for airlines in 2025, the head of the International Air Transport Association (IATA) said.

Speaking at a closing press conference on the final day of IATA’s Annual General Meeting in Rio de Janeiro, IATA Director General Willie Walsh said supply chain problems had forced airlines to operate older aircraft for longer than planned.

This has resulted in higher fuel consumption, increased maintenance expenses and additional aircraft leasing costs, Walsh said.

“Supply chain failures cost airlines at least $11 billion in 2025,” Walsh said, adding that higher fuel prices would only worsen the impact on the sector.

The figure is equal to nearly half of the industry’s projected $23 billion profit for this year.

Walsh said much of the cost could have been avoided if aircraft and engine manufacturers had resolved delivery and production problems more effectively.

Many airline executives have expressed frustration over the situation, he said, adding that dissatisfaction with aircraft and engine manufacturers is widespread across the industry.

The aviation sector has faced persistent delays in new aircraft deliveries, engine availability and spare parts supply in recent years, forcing carriers to keep less efficient aircraft in service.

Walsh also pointed to the importance of aviation-related decisions taken by the EU, saying that regulatory steps in Brussels often influence policy approaches around the world.

He said IATA had strengthened its lobbying capacity in Brussels to ensure that the airline industry’s position is heard more clearly by EU institutions.

The association has hired policy specialists as well as professionals experienced in lobbying activities as part of this effort, Walsh added.