IATA has warned that supply chain challenges will continue to affect airlines into 2025, raising costs and limiting growth. Aircraft deliveries are falling short of projections, with the global fleet ageing and leasing rates increasing. These issues hinder airlines' ability to improve fuel efficiency and meet net zero carbon targets.
The International Air Transport Association has cautioned that prominent supply chain issues will continue to affect airline performance well into 2025, raising costs and limiting growth. IATA's latest industry outlook highlights airlines' persistent challenges, such as improving revenue generation, increasing operational expenses, and hindering progress on environmental goals.
The global fleet's average age has reached a record high of 14.8 years, up from 13.6 years during 1990-2024. Aircraft deliveries have seen a sharp decline since their peak in 2018, with an estimated 1254 aircraft set to be delivered in 2024, a 30 per cent shortfall from earlier expectations.
The global fleet's average age has reached a record high of 14.8 years, up from 13.6 years during the 1990 to 2024 period. Aircraft deliveries have sharply declined since their peak in 2018, with an estimated 1254 aircraft set to be delivered in 2024, a 30 per cent shortfall from earlier expectations.
The forecast for 2025 remains low at 1802 deliveries, prominently below the anticipated 2293. The backlog of unfulfilled aircraft orders has surged to a record 17,000, representing a waiting time of 14 years at current delivery rates double the six-year average from 2013 to 2019. However, the waiting period is expected to shorten as delivery rates increase. Around 14 per cent of the global fleet, or approximately 5000 aircraft, remain parked higher than pre-pandemic levels. Many aircraft are grounded due to necessary engine inspections and supply chain disruptions.
IATAs Director General Willie Walsh commented on the issue, saying, "Supply chain issues are frustrating every airline with a triple whammy on revenues, costs and environmental performance."
He also explained that apart from the high load factors and the potential to deploy more aircraft profitably, the ongoing supply chain issues are restricting capacity and inflating costs, mainly through rising leasing rates. Walsh also pointed out that fuel efficiency improvements have stagnated with no progress between 2023 and 2024, and leasing rates for narrow-body aircraft have surged by 20 to 30 per cent compared to 2019.
He further emphasised that supply chain changes also show airlines progress towards achieving their net zero carbon goals, urging aircraft and engine manufacturers to resolve these issues. This would not only help airlines improve fuel efficiency but also better support their environmental efforts.
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