The International Air Transport Association (IATA) has said that persistent supply chain challenges could cost global airlines more than $11 billion in 2025.

According to IATA’s report released with consulting firm Oliver Wyman, postponements in aircraft deliveries and engine repairs are compelling airlines to operate older, less fuel-efficient planes. This could lead to $4.2 billion in additional fuel expenses in the coming year.

The report also estimates that airlines will spend $3.1 billion more on maintenance, as ageing fleets require more costly and frequent repairs. Furthermore, engine leasing costs are expected to rise by $2.6 billion, with engines spending longer periods in maintenance. Airlines are also facing $1.4 billion in higher spare parts inventory costs, as they stock up

See Full Page