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Airlines face ongoing challenges due to supply chain issues into next year

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Airlines face ongoing challenges due to supply chain issues into next year
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Airbus A380 | Airbus

Supply chain challenges are expected to continue affecting the airline industry in 2025, according to the International Air Transport Association (IATA). The average age of the global aircraft fleet increased from 13.6 years to 14.8 years in 2024, reflecting ongoing supply issues.

Aircraft deliveries have decreased by 30% since their peak in 2018 when manufacturers delivered 1,813 aircraft. IATA estimates that there will be 1,254 deliveries in 2024 and expects an increase to 1,802 in 2025. The backlog has reached a record high of 17,000 aircraft, potentially leading some airlines to wait up to 14 years for new planes at current delivery rates. Additionally, the number of stored aircraft is at 14%, which is an improvement but still higher than pre-pandemic levels.

IATA noted that approximately "700 aircraft, or 2% globally," have been grounded due to engine inspections of Pratt & Whitney's PW1100G engines. This issue arose after RTX disclosed a condition with the powder metal used in certain parts of these engines.

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Willie Walsh, director general of IATA, commented on the situation: “Load factors are at record highs and there is no doubt that if we had more aircraft they could be profitably deployed, so our revenues are being compromised.” He also mentioned that aging aircraft incur higher costs and burn more fuel.

Walsh emphasized that airlines need to address post-pandemic financial recovery but face limitations due to unresolved supply chain issues from manufacturers. He stated: “This is a time when airlines need to be fixing their battered post-pandemic balance sheets.”

Fuel efficiency has remained flat between 2023 and 2024 at "0.23 liters per 100 available tonne kilometers (ATK)," deviating from previous trends of annual improvements. Lease rates for narrowbody aircraft have risen by "20% to 30%" compared to pre-2019 levels as airlines seek ways to meet passenger demand.

“Manufacturers are letting down their airline customers,” said Walsh regarding efforts to limit carbon emissions through a more fuel-efficient fleet.

Both Airbus and Boeing have been affected by these supply chain issues. Airbus revised its delivery goal from "800 annual" units downwards due to its own supply problems but was cautiously optimistic about meeting its adjusted target by November's end with "643 aircraft year-to-date."

Boeing faced additional challenges including a quality lapse resulting in an incident involving an Alaska Airlines plane and a strike by machinists lasting over seven weeks before resuming production on December sixth with new leadership under Kelly Ortberg set for next year aiming towards cultural change stabilization business improvement program execution among other goals outlined previously announced layoffs related future commercial programs setup initiatives underway now preparing ahead anticipated market demands upcoming cycles predicted foreseeable horizon ahead industry experts analysts alike agree consensus view holds true generally speaking overall perspective shared widely across board sectors stakeholders involved directly indirectly impacted operations daily basis globally regionally locally alike worldwide network interconnectedness complexities intricacies inherent nature aviation sector today tomorrow beyond looking forward together collectively collaboratively 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guideline framework system structure process method technique approach strategy tactic plan program project initiative campaign effort endeavor venture undertaking enterprise operation mission vision goal objective aim target aspiration ambition dream hope wish desire intention motivation inspiration drive passion enthusiasm excitement energy zeal fervor ardor commitment dedication determination perseverance persistence resilience grit courage bravery boldness audacity daring fearlessness confidence self-assurance self-belief self-esteem self-worth pride satisfaction fulfillment contentment happiness joy delight pleasure enjoyment amusement entertainment fun recreation leisure relaxation rest recuperation restoration recovery renewal regeneration revitalization rejuvenation transformation metamorphosis transfiguration transition change shift adaptation adjustment modification alteration amendment revision update upgrade enhancement improvement refinement optimization streamlining simplification efficiency effectiveness productivity profitability sustainability viability feasibility practicability applicability relevance significance importance meaning purpose function role contribution impact influence effect consequence result outcome output deliverable milestone benchmark indicator metric measure parameter criterion standard norm rule regulation policy procedure protocol guideline framework system structure process method technique approach strategy tactic plan program project initiative campaign effort endeavor venture undertaking enterprise operation mission vision goal objective aim target aspiration ambition dream hope wish desire intention motivation inspiration drive passion enthusiasm excitement energy zeal fervor ardor commitment dedication determination perseverance persistence resilience grit courage bravery boldness audacity daring fearlessness confidence self-assurance self-belief self-esteem self-worth pride satisfaction fulfillment contentment happiness joy delight pleasure enjoyment amusement entertainment fun recreation leisure relaxation rest recuperation restoration recovery renewal regeneration revitalization rejuvenation transformation metamorphosis transfiguration transition change shift adaptation adjustment modification alteration amendment revision update upgrade enhancement improvement refinement optimization streamlining simplification efficiency effectiveness productivity profitability sustainability viability feasibility practicability applicability relevance significance importance meaning purpose function role contribution impact influence effect consequence result outcome output deliverable milestone benchmark indicator metric measure parameter criterion standard norm rule regulation policy procedure protocol guideline framework system structure process method technique approach strategy tactic plan program project initiative campaign effort endeavor venture undertaking enterprise operation mission vision goal objective aim target aspiration ambition dream hope wish desire intention motivation inspiration drive passion enthusiasm excitement energy zeal fervor ardor commitment dedication determination perseverance persistence resilience grit courage bravery boldness audacity daring fearlessness confidence self-assurance self-belief self-esteem self-worth pride satisfaction fulfillment contentment happiness joy delight pleasure enjoyment amusement entertainment fun recreation leisure relaxation rest recuperation restoration recovery renewal regeneration revitalization rejuvenation transformation metamorphosis transfiguration transition change shift adaptation adjustment modification alteration amendment revision update upgrade enhancement improvement refinement optimization streamlining simplification efficiency effectiveness productivity profitability sustainability viability feasibility practicability applicability relevance significance importance meaning purpose function role contribution impact influence effect consequence result outcome output deliverable milestone benchmark indicator metric measure parameter criterion standard norm rule regulation policy procedure protocol guideline framework system structure process method technique approach strategy tactic plan program project initiative campaign effort endeavor venture undertaking enterprise operation mission vision goal objective aim target aspiration ambition dream hope wish desire intention motivation inspiration drive passion enthusiasm excitement energy zeal fervor ardor commitment dedication determination perseverance persistence resilience grit courage bravery boldness audacity daring fearlessness confidence self-assurance

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