$11 billion supply chain setback for airlines in 2025
News: Global airlines are facing over $11 billion in additional costs in 2025 due to ongoing supply chain disruptions, according to an IATA and Oliver Wyman report. The five-year crisis—driven by labor, parts, and material shortages—has led to higher fares and flight cancellations.
The biggest costs include $4.2 billion in extra fuel from keeping older planes flying, $3.1 billion in maintenance, $2.6 billion in engine leasing, and $1.4 billion in spare parts.
IATA’s Willie Walsh raised concerns over supplier dominance and limited competition in the aerospace aftermarket, hinting at possible regulatory review.
With airlines’ margins at 6.7% versus suppliers’ 20%+, IATA warned that supply chain pressures will continue to weigh on the industry through the decade.
Source: The Economic Times
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