According to estimates from the International Air Transport Association (IATA) and Oliver Wyman, supply chain disruptions could cost airlines more than $11 billion in 2025, IATA Director of Flight and Technical Operations Stuart Fox said at IATA Global Media Day, Report informs.
He stated that the total losses are the result of several key factors, and that this is not a single problem, but a complex one.
"Losses due to reduced fuel efficiency are expected to reach $4.2 billion. Delays in the delivery of more fuel-efficient aircraft, which are important for both cost reduction and climate goals, are leading to significant losses," Fox noted.
According to him, additional maintenance costs ($3.1 billion) follow: "Older aircraft require more maintenance. Heavy inspections are more difficult to schedule and have increased in duration. Engine overhauls now take an average of 75 days. Landing gear overhauls have increased from 90 to 120 days. All of this increases aircraft downtime and increases maintenance costs."
Additional spare parts storage costs are expected to reach $1.4 billion.
"Parts deliveries are delayed, so airlines are forced to maintain large inventories to avoid downtime and ensure redundancy," the IATA representative explained.
Fox also noted increased engine leasing costs, expected to reach $2.6 billion.
As engine repairs take longer, airlines need spares. Demand is growing, and leasing costs are increasing. "This is how this enormous sum is formed," added Fox.
He stated that to stabilize the situation, the aerospace industry needs to expand access to best aftermarket practices to reduce the maintenance, repair, and operations (MRO) market's dependence on OEM licenses and increase access to alternative sources of spare parts and services.
Furthermore, it is necessary to increase supply chain transparency at all levels to identify risks early, eliminate bottlenecks, and manage flows more reliably. It is also necessary to more actively use data and analytics-predictive maintenance, integrated spare parts fleets, digital platforms for inventory optimization and downtime reduction-as well as expand repair and manufacturing capacity, expedite repair approvals, support the use of remanufactured and serviceable material (USM), and implement modern technologies to reduce component shortages.