The International Air Transport Association (IATA) in collaboration with Oliver Wyman, a global leader in management consulting and a business of Marsh McLennan (NYSE:MMC), today launched a joint study, Reviving the Commercial Aircraft Supply Chain (link). The report addresses supply chain challenges in the aerospace industry, and explores the root cause of these challenges, the impact on airlines, and initiatives to move the aviation industry forward.

Challenges within the aerospace industry’s supply chain are delaying production of new aircraft and parts, resulting in airlines reevaluating their fleet plans and, in many cases, keeping older aircraft flying for extended amounts of time. The worldwide commercial backlog reached a historic high of more than 17,000 aircraft in 2024, significantly higher than the 2010 to 2019 backlog of around 13,000 aircraft per year.

The slow pace of production is estimated to cost the airline industry more than $11 billion in 2025, driven by four main factors, Excess fuel costs (~$4.2 billion), Additional maintenance costs ($3.1 billion), Increased engine leasing costs ($2.6 billion), and Surplus inventory holding costs ($1.4 billion).

In addition to the mounting costs, supply chain challenges inhibit airlines from deploying sufficient aircraft to meet growing passenger demand. In 2024, passenger demand rose 10.4%, exceeding the capacity expansion of 8.7% and pushing load factors to a record 83.5%. The trend in rising passenger demand continues into 2025.