IATA Raises Concern Over Global Aerospace Supply Chain Disruptions

The International Air Transport Association (IATA) has warned that persistent disruptions in the global aerospace supply chain could cost airlines more than $11 billion in 2025.

In a new report produced with consultancy firm Oliver Wyman, IATA highlighted mounting production delays, parts shortages, and logistical bottlenecks that have created severe pressure across the aviation industry.

The report noted that the backlog of undelivered aircraft has risen to over 17,000, compared to an average of 13,000 before the pandemic. The shortage has forced many airlines to extend the use of older, less fuel-efficient aircraft, inflating operating and maintenance costs.

“These challenges are unlike anything we have seen in decades,” said Willie Walsh, IATA’s Director General. “Reliable supply chains are vital to efficient airline operations and sustainability goals.”

The disruptions have also slowed capacity growth. In 2024, global passenger demand rose by 10.4 percent, while capacity increased by only 8.7 percent, pushing load factors to a record 83.5 percent.

IATA urged manufacturers, suppliers, and governments to work together to stabilize production and strengthen supply chain resilience to support the sector’s recovery and growth.

Oshuniran Sheriff Ola