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Travel Radar - Aviation News > News > Aviation > Aircraft > Aircraft Deliveries Stall, $11B Loss Looms Over Global Aviation
AircraftAirline EconomicsAviationManufacturing

Aircraft Deliveries Stall, $11B Loss Looms Over Global Aviation

Juna Tharakan
Last updated: 16 October 2025 10:07
By Juna Tharakan
3 Min Read
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Global aviation faces a crisis in 2025 © Bernd Dittrich on Unsplash
Global aviation faces a crisis in 2025 © Bernd Dittrich on Unsplash
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The global aviation sector is grappling with a deepening supply chain crisis that threatens to derail its post-pandemic recovery.

Summary
Aviation Industry Faces a Severe Supply Chain CrunchStructural Weaknesses Deepen the Aviation CrisisFragile Supply Chains and Labour Shortages Compound Delays

Aircraft deliveries in 2024 plunged to just 1,254, nearly 30% below pre-COVID levels, while the backlog ballooned to a record 17,000 jets, according to a report by the International Air Transport Association (IATA).

Global aviation faces an $11 billion blow in 2025 © Troy Mortier on Unsplash
$11 billion loss looms over aviation sector © Troy Mortier

Aviation Industry Faces a Severe Supply Chain Crunch

Hundreds of aircraft remain grounded due to persistent engine issues, leaving airlines short on capacity and struggling to meet surging passenger demand.

Analysts estimate that these disruptions will cost airlines over $11 billion in 2025, stemming from delayed fuel savings, mounting maintenance costs and inflated leasing expenses.

The financial strain is compounded by operational setbacks, including flight cancellations, increased compensation payouts and forced component replacements that degrade aircraft performance. Supply chain bottlenecks, causing airlines to fly older aircraft, are driving up costs —up to $4.2 billion in delayed fuel savings and around $3.1 billion in higher maintenance costs in 2025 so far, according to the report.

Global aviation faces a crisis in 2025 © Elizabeth Jamieson on Unsplash
Aviation industry faces a severe supply chain crunch © Elizabeth Jamieson

Structural Weaknesses Deepen the Aviation Crisis

At the core of aviation’s supply chain woes lies a shift in the aerospace business model.

Original Equipment Manufacturers (OEMS) now rely heavily on aftermarket revenue, spare parts, repairs and maintenance, rather than initial aircraft sales. While newer jets offer superior fuel efficiency, they also bring complex maintenance needs that often tie airlines to OEM-controlled repair networks.

This monopoly-like dynamic inflates costs and extends lead times for essential parts. Leasing companies, which manage over half of the world’s fleet, further constrain flexibility by mandating OEM parts for lease returns.

Such practices leave airlines with limited options to source alternative approved parts or faster repairs.

Global aviation faces a crisis in 2025 © David Syphers on Unsplash
Structural weakness deepens aviation crisis © David Syphers

Fragile Supply Chains and Labour Shortages Compound Delays

Beyond structural issues, fragile supply networks and labour shortages have compounded the problem.

Geopolitical instability has disrupted access to key materials like titanium, while trade tensions have hindered cross-border logistics. Metals such as aluminium and superalloys remain in short supply, with defence and business aviation sectors competing for the same limited resources. Meanwhile, a global shortage of skilled labour is worsening turnaround times.

With many experienced technicians retiring and replacements taking years to train, airlines are battling an acute workforce deficit.

Rising wages and limited manpower are driving up costs and slowing maintenance operations.

What do you think about the aviation industry’s supply chain crunch? Let us know in the comments below.

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Juna Tharakan
ByJuna Tharakan
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