IATA warns tariff-linked supplier price hikes

News: Global airlines face renewed cost pressures as IATA warns that tariff-driven price hikes by aircraft and engine suppliers could worsen delivery delays and strain already fragile aviation supply chains.

IATA DG Willie Walsh said airlines remain frustrated as supply-chain disruptions continue to push up costs while OEMs report stronger profits.

He cautioned that suppliers planning tariff-based price increases risk further imbalance in the industry.

AAPA DG Subhas Menon added that while aircraft and engines are exempt from tariffs, many critical raw materials and components are not—raising supplier costs, fuelling inflation, and slowing supply-chain recovery.

An IATA–Oliver Wyman study estimates these challenges will cost airlines over USD 11 billion in 2025, even as demand remains strong.