Global airlines are bracing for a colossal supply-chain cost burden in 2025—estimated at over US$11 billion—according to a joint report by the International Air Transport Association (IATA) and consultants Oliver Wyman.
The additional costs are driven by a confluence of factors: persistent disruptions in the supply chain, rising fuel expenses, parts shortages, maintenance delays, and the need to stockpile spare inventory. Of the $11 billion total, about $4.2 billion is attributed to extra fuel usage because many older aircraft must remain in service longer than planned. Some $3.1 billion comes from increased maintenance costs, $2.6 billion from leased engines to offset delays, and $1.4 billion linked to inventory build-up.
IATA Director General Willie Walsh expressed surprise at the sheer scale of the burden, warning that these costs will likely be passed on to travelers in the form of higher ticket prices and reduced margins for airlines. He also highlighted the stark profit gap between airlines and engine manufacturers, with margins for the latter frequently exceeding 20%, significantly higher than the average 6.7% for passenger carriers.
The report underscores how fragile the aviation sector remains even after years of recovery from pandemic downturns. Airlines and regulators worldwide may soon come under pressure to reexamine procurement strategies, maintenance cycles, and supply chain resilience to avoid deeper financial stress ahead.