Airlines are projected to lose over $11 billion in 2025 due to ongoing delays in aircraft and parts deliveries.

A joint report by the International Air Transport Association and consulting firm Oliver Wyman reveals that global commercial aircraft production is failing to keep pace with demand.

The study notes a record backlog of more than 17,000 aircraft in 2024, significantly above the 2010–2019 annual average of roughly 13,000.

“Challenges within the aerospace industry’s supply chain are delaying production of new aircraft and parts, resulting in airlines reevaluating their fleet plans and, in many cases, keeping older aircraft flying for extended amounts of time.

“The worldwide commercial backlog reached a historic high of more than 17,000 aircraft in 2024, significantly higher than the 2010 to 2019 backlog of around 13,000 aircraft per year.

“The slow pace of production is estimated to cost the airline industry more than $11 billion in 2025, driven by four main factors,” the report read in part.

The losses for airlines are largely fueled by rising expenses: around $4.2 billion in extra fuel costs from flying older, less efficient aircraft, $3.1 billion in additional maintenance, $2.6 billion in higher engine leasing fees, and $1.4 billion from holding excess inventory.

Soaring passenger demand is amplifying the effects of these supply chain disruptions.

In 2024, global air travel grew by 10.4 per cent, outpacing capacity expansion of just 8.7 per cent and driving load factors to a record 83.5 per cent.

This imbalance has compelled airlines to operate older aircraft for longer periods, reducing efficiency and raising operational costs.

The report points to geopolitical instability, raw material shortages, a tight labor market, and structural inefficiencies in the aerospace industry as the root causes.

These challenges have slowed the production of aircraft, engines, and critical components, further widening the gap between supply and demand.

To alleviate the pressure, the report urged closer collaboration across the aviation ecosystem. Key recommendations include expanding repair and parts capacity, enhancing transparency across supplier networks, and leveraging predictive maintenance and shared data platforms to boost efficiency.

It also advocated for a more open aftermarket, allowing airlines greater access to alternative parts and repair options beyond those controlled by original equipment manufacturers.