Aviation supply chain disruptions show no sign of resolution in the near term, a briefing of global aviation journalists has been told in Geneva.
The consequence is that airlines face delivery delays for new aircraft, extended engine overhaul times, and shortages of spare parts. An IATA report published in October 2025 calculated the total additional cost to the industry at more than €10 billion for the year alone. Older aircraft remain in service longer than planned, requiring extra maintenance and consuming more fuel, while carriers hold larger inventories of spares and lease additional planes to maintain schedules.
Willie Walsh told the annual IATA Global Media Day in Geneva that the situation has become unacceptable because the same manufacturers and maintenance providers responsible for the delays have reported record profits. Engine overhaul companies posted operating margins of 27.6% in the first nine months of 2025, while aircraft part suppliers achieved margins around 26%. These suppliers have increased prices during the disruption, transferring billions in extra costs to airlines that continue to earn net profit margins below 4%.
Aircraft order backlogs reached 17,000 units by the end of 2025, compared with 13,000 before the pandemic. Average delivery time for a new aircraft now stands at 6.8 years, against 4.5 years in 2018. More than 5,300 aircraft due for delivery in 2024–2025 remain undelivered. Heavy maintenance checks that once completed in 75 days now require up to 120 days, and spare engine costs have risen sharply because of limited availability.
The industry has identified several measures to limit the damage. These include greater sharing of demand data across the supply chain, wider use of certified alternative parts and materials, and increased application of predictive maintenance techniques. Opening the aftermarket for engines and components would add capacity, but manufacturers currently restrict access.
Key takeaways include the transfer of more than €10 billion in extra costs from suppliers to airlines in 2025, the contrast between supplier profit margins above 25% and airline margins below 4%, and the need for urgent structural changes to improve transparency and competition in the supply chain.
“They’re making massive margins at the same time as doing a shit job producing the product. The additional cost that the industry is bearing as a result of the supply disruption… is estimated to be over US$11 billion.
“We’ve got to challenge these guys that they feel comfortable making margins of 27 and 26% at the same time as forcing our industry to [incur]huge additional costs.”
