- The backlog of new aircraft reached a historic high of 17,000, costing the airline industry over $11 billion this year
- Costs include $4.2 billion in excess fuel for older aircraft, $3.1 billion in increased maintenance, and $2.6 billion in engine leasing
- Passenger demand growth (10.4%) is currently outpacing capacity growth (8.7%), highlighting the need for fleet expansion
- Suggested solutions include enhancing aftermarket best practices, promoting collaboration, and increasing supply chain transparency
The global aviation sector is actively focusing on strategies to manage and mitigate the challenges presented by a historic backlog of new aircraft orders. Despite a significant backlog reaching 17,000 aircraft and associated costs projected to exceed $11 billion this year, the industry is already charting a path toward resolution, according to a new report from IATA and Oliver Wyman. The high costs stem from operating older, less fuel-efficient planes, increased maintenance, and rising engine leasing expenses, yet industry leaders are moving to address these financial pressures with proactive solutions.
The need for fleet expansion is clear, as passenger demand grew by 10.4% last year, outpacing capacity growth. This robust appetite for air travel underscores the critical importance of a stable supply chain for the industry’s efficient operation and sustained growth. IATA highlights that the complex issues—rooted in geopolitical instability, economic models, and resource shortages—can be tackled through collaborative efforts.
The report offers several constructive actions that can provide immediate relief and long-term stability. Key recommendations emphasize the value of greater industry collaboration and embracing aftermarket best practices, such as alternative sourcing for materials and services. Furthermore, enhancing supply chain visibility is identified as a vital step, equipping airlines with the data necessary to plan around current blockages while simultaneously helping manufacturers address underlying bottlenecks. This focus on transparency and shared solutions demonstrates a united effort to streamline the process, reduce mounting costs, and ensure the aviation sector can effectively meet soaring consumer demand.