Supply chain woes continue affecting airlines through next year says IATA

Research

Dr Xie Xingquan Regional Vice President, North Asia & Asia Pacific (ad interim) | International Air Transport Association - IATA

By Sky Industry News

Dec 10, 2024

The International Air Transport Association (IATA) has projected that ongoing supply chain issues will continue to affect airline performance into 2025, impacting costs and limiting growth. According to IATA's latest industry outlook, the average age of the global fleet has increased to a record 14.8 years from an average of 13.6 years between 1990 and 2024.

Aircraft deliveries have seen a sharp decline from their peak in 2018, with only 1,254 aircraft expected to be delivered in 2024—a significant shortfall compared to earlier predictions. The forecast for 2025 suggests a slight increase to 1,802 deliveries, but this remains below initial expectations of 2,293. Additionally, the backlog for new aircraft orders has reached an unprecedented high of 17,000 planes.

Currently, about 14% of the total fleet is parked due to various reasons including engine inspections. This percentage represents approximately 5,000 aircraft out of a total fleet size of over 35,000 as of December 2024.

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Willie Walsh, IATA’s Director General stated: “Supply chain issues are frustrating every airline with a triple whammy on revenues, costs, and environmental performance.” He highlighted that load factors are at record highs and more aircraft could be profitably deployed if available.

The report also indicates two negative trends partly caused by persistent supply chain problems: stagnant fuel efficiency levels between 2023 and 2024 and significantly increased leasing rates for narrow body aircraft compared to pre-pandemic levels.

Walsh further commented on these challenges: “The entire aviation sector is united in its commitment to achieving net zero carbon emissions by 2050... Manufacturers are letting down their airline customers.”

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