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Aircraft delivery delays are stunting growth, but there's a silver lining

June 3, 2025By ePlane AI
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Aircraft delivery delays are stunting growth, but there's a silver lining
Aircraft Deliveries
Order Backlog
Fleet Age

Aircraft Delivery Delays Are Stunting Growth, but There Is a Silver Lining

Industry Faces Unprecedented Backlogs and Aging Fleets

Commercial airlines worldwide are confronting significant delivery delays, with a backlog exceeding 17,000 aircraft orders—equivalent to 14 years of production at current manufacturing rates, according to the International Air Transport Association (IATA). This growing backlog is impeding industry expansion and contributing to the aging of global fleets, industry officials highlighted during IATA’s Annual General Meeting in New Delhi.

The average age of airline fleets has increased from 13 years in 2015 to 15 years today. Boeing and Airbus, the two largest aircraft manufacturers globally, had initially forecasted 1,430 deliveries for this year. However, only 359 aircraft were delivered in the first four months, according to data from Cirium. Nick Careen, IATA’s senior vice president of operations, safety, and security, described the situation as highly unpredictable, stating, “You order an aircraft today, your guess is as good as mine when you’re going to receive it.”

IATA Director General Willie Walsh noted that the annual fleet replacement rate has fallen to approximately half of the 5% to 6% observed in 2020. He criticized manufacturers for their slow progress in resolving supply chain disruptions, warning that these challenges could persist through the end of the decade. Key factors contributing to the delays include a shortage of skilled labor, difficulties in sourcing titanium, and a scarcity of spare parts. The situation has been further exacerbated by the grounding of aircraft for inspections related to Pratt & Whitney GTF engines.

Industry Strain and Rising Tensions

The impact of these delays is being felt across the aviation sector. Peter Elbers, CEO of IndiGo, whose airline has nearly 1,000 Airbus narrowbody planes and 60 widebody aircraft on order, emphasized that delivery delays are hindering the ability to meet market demand. He described the situation as a “missed opportunity” for addressing growing passenger needs.

Tensions between airlines and manufacturers are escalating, with some carriers reportedly considering legal action over persistent delays, according to Reuters. Market reactions have been mixed: while Boeing experienced a positive month recently, airlines such as Air Canada are struggling with postponed deliveries of critical models like the A321XLR and 787-10.

A Silver Lining Amid Challenges

Despite these difficulties, some analysts identify a potential upside. Steve Saxon, a partner at consulting firm McKinsey, argued that delivery delays have inadvertently benefited airlines by curbing overexpansion, which in turn has supported higher yields and improved profitability. The airline industry posted a net profit of $32.4 billion last year, according to IATA. Walsh also acknowledged this positive aspect, noting that airlines achieved a record load factor of 84% in 2023, a level he had not anticipated reaching.

While commercial aviation contends with these delivery challenges, the business aviation sector is experiencing renewed growth. Demand for new business jets is projected to increase by 11% in 2025. Industry stakeholders are collaborating to address ongoing supply chain issues, striving to balance growth ambitions with operational stability in a complex and evolving environment.

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First Trial of Drone Parcel Delivery Conducted

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JFK Airport Introduces Alia CX300 with 35-Minute Flights to East Hampton

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AAIB Initiates Analysis of Air India Crash Black Box Data Investigation Underway Following Fatal Air India Flight Crash New Delhi—India’s Aircraft Accident Investigation Bureau (AAIB) has begun a detailed examination of the black box data recovered from Air India flight AI-171, which tragically crashed on June 12. The bureau is currently analyzing information from both the Cockpit Voice Recorder (CVR) and Flight Data Recorder (FDR) to reconstruct the events leading up to the accident and identify contributing factors. The Ministry of Civil Aviation confirmed that the investigation is being led by the Director General of the AAIB, with technical support from a representative of the United States’ National Transportation Safety Board (NTSB), an independent agency renowned for its expertise in civil transportation accident investigations. On June 24, 2025, the joint investigative team commenced data extraction from the black boxes, successfully retrieving the Crash Protection Module (CPM) and accessing the memory module at the AAIB laboratory the following day. “The analysis of CVR and FDR data is underway. These efforts aim to reconstruct the sequence of events leading to the accident and identify contributing factors to enhance aviation safety and prevent future occurrences,” the Ministry stated. Impact and Broader Implications for Air India and Indian Aviation The crash involved a Boeing 787-8 Dreamliner, powered by two GEnx-1B engines manufactured by GE Aerospace, which went down shortly after takeoff from Ahmedabad airport. All 241 passengers and crew on board lost their lives in the incident. This tragedy has cast a pall over Air India’s ongoing Vihaan.AI transformation program, an ambitious initiative designed to elevate the airline to “world-class global” status within five years. In the wake of the crash, the airline has faced intensified safety inspections and operational disruptions, raising concerns about its reputation and the progress of its strategic overhaul. The findings of the investigation are anticipated to have far-reaching consequences for Air India’s future operations as well as the wider Indian aviation sector. Transparent communication from the airline will be essential as the probe advances, particularly in maintaining passenger confidence and upholding industry standards. Compliance with International Protocols and Next Steps In accordance with guidelines set by the International Civil Aviation Organization (ICAO), investigative agencies are required to submit a preliminary report within 30 days of an accident. The Ministry of Civil Aviation emphasized that all investigative procedures are being conducted in strict compliance with both domestic regulations and India’s international obligations under the ICAO Chicago Convention. As the AAIB and its international partners continue their meticulous analysis, the primary focus remains on determining the root causes of the crash and implementing measures to prevent similar tragedies in the future.
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LHT Begins Construction of Engine Maintenance Facility at Calgary Airport

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French Facility Advances Civil and Military Engine Research

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Mechanics Describe Las Vegas Flight Landing with Smoking Engine as Smooth

Mechanics Describe Las Vegas Flight Landing with Smoking Engine as Smooth

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