IATA: Supply Chain Challenges Could Cost Airlines More than $11 Billion in 2025
- staff writers
- Nov 18, 2025
- 2 min read
IATA: Supply Chain Challenges Could Cost Airlines More than $11 Billion in 2025
The International Air Transport Association (IATA), in collaboration with Oliver Wyman, recently published a joint study, Reviving the Commercial Aircraft Supply Chain.
This important report addresses supply chain challenges in the aerospace industry, and explores their root causes, current impact on airlines, and initiatives to move the aviation industry forward.
Current challenges are delaying production of new aircraft and parts, resulting in airlines reevaluating their fleet plans and, in many cases, keeping legacy aircraft flying for extended periods that were not originally planned.
The worldwide commercial backlog for new aircraft 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.
This slower production/ delivery pace is estimated to cost the airline industry more than $11 billion in 2025, and is driven by four key factors:
Additional fuel costs (~$4.2 billion): Airlines are operating older, less fuel-efficient aircraft because new aircraft deliveries are delayed, leading to higher fuel costs.
Additional maintenance costs ($3.1 billion): The global fleet is aging, and older aircraft require more frequent and expensive maintenance.
Increased engine leasing costs ($2.6 billion): Airlines need to lease more engines since engines spend longer on the ground during maintenance. Aircraft lease rates have also risen by 20–30% since 2019.
Surplus inventory holding costs ($1.4 billion): Airlines are stocking more spare parts to mitigate unpredictable supply chain disruptions, increasing inventory costs.
With $1.4bn spent by the airlines on inventory as buffer stock, the pain is real. AVIAN’s inventory-based working capital solutions are real too, and proven. Reach out. We can help.
Sources: IATA https://www.iata.org/en/pressroom/2025-releases/2025-10-13-01/, Oliver Wyman
About the AVIAN Inventory Management Orlando, FL Distribution Hub:
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About AVIAN Inventory Management
Designed to promote accessibility and speed to market, AVIAN’s focused distribution center in Orlando, Florida delivers unparalleled product availability to all aircraft operators, and maintenance and repair stations around the world, providing a one-stop, same-day, go-to access point through its multiple Sales Channel Partners.