AerCap Leases Two Airbus A321NEO Aircraft to My Freighter

Global Airlines Project $41 Billion Net Profit in 2026 Despite Persistent Challenges The global airline industry is poised to achieve a record net profit of $41 billion in 2026, according to the latest forecast from the International Air Transport Association (IATA). This optimistic projection emerges despite ongoing obstacles such as supply chain disruptions, slower aircraft deliveries, and delays in the rollout of more fuel-efficient jets. Regional Profit Contributions and Market Dynamics IATA’s outlook underscores strong performance in air cargo operations and the advantageous impact of a weaker US dollar, which has helped many carriers reduce operational costs. European airlines are expected to lead the profit contributions with an estimated $14 billion, surpassing North American carriers, who are projected to generate $11.3 billion. Meanwhile, Middle Eastern airlines are anticipated to achieve the highest profitability per passenger, with forecasts indicating $28.6 per traveler in 2026. Nevertheless, the industry continues to confront significant challenges. Both Airbus and Boeing have experienced delivery delays in recent years. Airbus recently reduced its 2025 delivery target by 4% after uncovering quality issues with metal fuselage panels on its A320 series, confirming that deliveries had already slowed as of November. This setback followed a recall of 6,000 A320-series aircraft due to a software glitch linked to cosmic radiation. Although the A320 family, including the popular A321 model, has now surpassed Boeing’s 737 MAX as the most-delivered passenger jet in history, confidence in Airbus has diminished. In contrast, IATA Director General Willie Walsh noted improvements in Boeing’s performance, with airlines expressing increased confidence in the manufacturer’s ability to meet its commitments. Walsh highlighted that engine manufacturers remain a critical bottleneck, as they have lagged behind airframe producers in delivering new and repaired engines. This has forced companies like Airbus to delay delivery schedules. The high costs associated with maintaining commercial fleets, coupled with intense competition among engine makers to develop sustainable propulsion technologies, further complicate the industry’s outlook. Operational and Environmental Challenges Despite the strong profit forecast, airlines are contending with softening yields and load factors, particularly on transatlantic routes. This trend was evident in the negative market reaction to British Airways’ third-quarter earnings. In Asia, Singapore Airlines’ financial results were adversely affected by losses at its associate Air India, which is facing mounting competition and financial difficulties. The sector’s transition to greener operations also faces significant hurdles. IATA warned that the industry is likely to miss its targets for sustainable aviation fuel (SAF) usage in the coming years, attributing slow progress to fuel producers and regulatory delays. SAF, primarily derived from waste or used cooking oil, can substantially reduce emissions but remains two to five times more expensive than conventional jet fuel. IATA estimates that only 2.4 million metric tonnes of SAF will be available in 2026, covering a mere 0.8% of total fuel consumption. While the aviation sector remains committed to achieving net-zero emissions by 2050, progress depends heavily on scaling up SAF production and adoption. “Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” Walsh stated. However, he cautioned that regulatory costs, geopolitical uncertainty, and operational challenges continue to constrain the industry’s potential for even greater gains.

4AIR Launches Flight Management Software to Streamline Sustainability and Regulatory Reporting CLEVELAND, Dec. 9, 2025 — 4AIR, a global leader in business aviation sustainability, has introduced a new flight management software platform aimed at simplifying sustainability tracking and regulatory reporting for aircraft operators. The software integrates with leading flight planning providers such as AirNav, FlightAware, FL3XX, MyAirOps, TripPlanning.biz, Leon, and ForeFlight, facilitating seamless data exchange and automating sustainability workflows. Enhancing Automation and Integration Through these API integrations, flight departments and operators can automatically transmit flight activity data directly to 4AIR, eliminating the need for manual uploads and minimizing the risk of errors. This automation embeds sustainability reporting into daily operations, making compliance and environmental stewardship more accessible and efficient. Kennedy Ricci, President of 4AIR, emphasized the company’s commitment to accessibility, stating, “By integrating with flight management software, we’re able to further our white glove service through automation, easing reporting burdens and better embedding sustainability into an operation.” Stefan Oberender, CEO of FL3XX, highlighted the growing importance of sustainability tools in aviation, noting, “As environmental awareness among passengers continues to grow and operators place increasing focus on sustainability, tools that make responsible choices straightforward are more important than ever. With the new 4AIR and FL3XX integration, customers can stay aligned with their sustainability goals with ease, without any extra steps.” Addressing Regulatory Challenges and Market Competition The software’s automated data flows support timely emissions calculations, sustainable aviation fuel (SAF) tracking, and compliance monitoring, which are critical as the aviation industry navigates an evolving regulatory environment. New mandates such as ReFuelEU and the EU Emissions Trading System (ETS) require precise monitoring and reporting, and 4AIR’s platform aims to help operators manage these complex, regionally varied regulations with greater confidence and efficiency. The launch arrives amid intensifying competition in the aviation sustainability sector. As regulatory demands increase, other industry players may respond by developing proprietary technologies or enhancing existing systems to maintain a competitive advantage. The integration of advanced Environmental, Social, and Governance (ESG) reporting tools, exemplified by recent partnerships between Thomson Reuters and SAP, may prompt 4AIR to pursue similar collaborations to ensure its platform remains comprehensive and competitive in meeting operators’ compliance and sustainability requirements. For operators, 4AIR’s solution offers the potential to simplify regulatory compliance while enhancing transparency and accountability across corporate flight departments, charter operators, and fractional providers. By automating sustainability and compliance reporting, 4AIR positions itself as a vital partner for aviation businesses striving to meet both current and future environmental standards. About 4AIR 4AIR is an aviation industry pioneer providing sustainability solutions that extend beyond carbon neutrality. Its framework includes turnkey voluntary sustainability programs and a full-service compliance program designed to automate environmental regulatory obligations. Supporting all pillars of aviation sustainability, 4AIR’s offerings encompass verified carbon offsets and removals, sustainable aviation fuel, contrail mitigation, and emerging technologies. For more information, visit www.4air.aero.

Aviation Supply Chain Issues Pose Risks to Global Tourism Growth The global air travel industry is poised for a significant resurgence, with projections estimating that airlines will carry 5.2 billion passengers by 2026. This anticipated increase represents a critical juncture for the tourism sector, offering renewed opportunities for destinations worldwide as travelers return following years of disruption. For countries and cities heavily dependent on tourism, the expected rise in passenger traffic promises to revitalize local economies, bolster hospitality industries, and support cultural heritage sectors. Supply Chain Challenges Threaten Aviation Capacity Despite this optimistic forecast, the industry faces considerable challenges stemming from persistent supply chain bottlenecks. Experts caution that ongoing disruptions in the availability of aircraft parts, maintenance services, and new technological components could undermine the sector’s capacity to meet growing demand. These issues risk reducing flight availability, driving up operational costs, and potentially restricting access to key tourist destinations. In response, organizations such as Taiwan’s Aerospace Industrial Development Corporation (AIDC) are adopting innovative solutions. By integrating advanced thermoplastic composites into aircraft manufacturing, AIDC aims to address both the surging market demand and the aviation industry’s commitment to achieving net-zero carbon emissions. Such technological advancements are essential for airlines striving to maintain stable route networks and avoid disruptions that could adversely affect international tourism flows. Regional Outlook and Industry Adaptation The Asia–Pacific region is expected to be a major engine of growth, driven by an expanding middle class and robust economic performance. Airlines in this region are projected to reach seat occupancy rates as high as 83.8% by 2026, translating into increased traveler numbers and enhanced business opportunities for hotels, travel agencies, and local operators. Countries including India, China, and those in Southeast Asia are preparing for a substantial influx of visitors, while cities such as Singapore, Bangkok, and Tokyo anticipate significant economic benefits from sustained airline capacity. In Europe, established tourism destinations like Italy, Spain, and France are also positioned to benefit. The region’s dense flight networks and the popularity of low-cost carriers are expected to attract international tourists seeking affordable travel options. Cities such as Paris, Barcelona, and Rome are already intensifying preparations for higher visitor volumes, with local businesses ranging from restaurants to museums poised to gain from increased foot traffic. Nevertheless, the risks associated with supply chain disruptions remain considerable. Constraints on accessibility could limit the growth of tourist attractions and raise safety concerns if essential maintenance or upgrades are delayed. Reflecting the industry’s need for agile leadership amid these challenges, Marriott Vacations Worldwide recently appointed Matthew E. Avril as Interim President and CEO, highlighting the importance of strategic management in navigating global supply chain uncertainties and macroeconomic fluctuations. As the aviation and tourism sectors look ahead to 2026, their capacity to adapt to supply chain challenges will be pivotal. Continued innovation, strategic planning, and collaboration across the industry will determine whether the projected surge in global tourism can be fully realized or if persistent bottlenecks will impede the sector’s recovery and growth.

Assaia Secures $26.6 Million in Series B to Enhance AI for Airport Operations Assaia, a Zurich-based aviation technology company, has successfully raised $26.6 million in an oversubscribed Series B funding round led by Armira Growth, with participation from existing investors. This investment arrives amid increasing operational pressures faced by airports worldwide, as air traffic volumes surpass pre-pandemic levels and staffing shortages challenge efficiency and profitability. In response, the aviation sector is progressively adopting intelligent automation to strengthen resilience and streamline airport operations. Advancing AI-Driven Solutions for Airport Efficiency Assaia’s platform employs artificial intelligence and computer vision to deliver real-time visibility and control over aircraft turnaround processes for airports and airlines. By forecasting potential disruptions, automating critical procedures, and optimizing operational planning, the company’s technology aims to reduce turnaround times, enhance safety, and promote more sustainable airport environments. The platform is currently operational at major international airports including New York JFK, London Heathrow, Dubai International, and Toronto Pearson. At these hubs, Assaia’s solutions have contributed to minimizing delays, improving on-time performance, and increasing gate utilization efficiency. Christiaan Hen, CEO of Assaia, emphasized the significance of the funding round, stating, “Airports and airlines are increasingly relying on AI to address growing operational challenges. With Armira’s support, we are accelerating the rollout of new technologies and expanding our presence to deliver measurable value in some of the world’s most complex airport environments.” Strategic Expansion and Industry Context The newly secured capital will enable Assaia to scale its AI platform on a global scale and develop additional solutions tailored for airports, airlines, and ground handling services. A portion of the funding is earmarked for the launch of the next-generation StandManager, an AI-powered planning module designed to optimize gate and stand assignments prior to aircraft arrival, thereby enhancing predictability and gate utilization in high-traffic settings. Assaia’s successful funding round reflects a broader surge of investor confidence in AI’s transformative potential within airport operations. However, this influx of capital also intensifies competitive pressures, compelling Assaia to accelerate innovation to maintain its market position. The sector is witnessing increased activity from competitors such as Amenitiz, which recently raised $45 million for AI tools in the hospitality industry, and EverySim, which secured seed funding for AI-based engineering simulation. Additionally, the $75 million raised by Israeli AI security firm Sweet Security highlights a wider trend of substantial investment in AI-driven security and operational solutions, factors that may influence Assaia’s strategic direction and competitive landscape. As the deployment of advanced AI technologies in airport operations accelerates, Assaia’s latest funding positions the company to broaden its global footprint and continue driving innovation in one of the world’s most complex and high-stakes environments.

North America Advances Toward ICAO’s 2030 Clean Energy Goal While Other Regions Fall Behind North America on Track to Meet ICAO’s Emissions Reduction Target North America is currently the only region poised to meet the International Civil Aviation Organisation’s (ICAO) 2030 clean energy target, according to recent analysis by aviation market intelligence firm IBA. ICAO’s goal mandates a 5% reduction in CO₂ emissions from international aviation by 2030, primarily through the adoption of sustainable aviation fuel (SAF) and other clean energy sources. While North America is expected to achieve this milestone, other regions—including Europe, Asia Pacific, Latin America, Africa, and the Middle East—are forecasted to fall short unless they significantly expand SAF production capacity. IBA’s evaluation integrates ICAO’s latest SAF production data with independent forecasts of global fuel demand to assess whether each region is developing sufficient supply to align with credible long-term decarbonisation pathways. The findings reveal that North America’s current SAF capacity is slightly below the 2030 requirement; however, when accounting for facilities under construction, the region is projected to marginally exceed ICAO’s benchmark. This progress is largely attributed to strong policy support in the United States, including the federal SAF Grand Challenge, tax incentives under the Inflation Reduction Act, and state-level initiatives such as the Low Carbon Fuel Standard. These measures have unlocked financing for a diverse array of SAF technologies, enabling continued advancement despite some federal policy rollbacks. Challenges Facing Other Regions In contrast, progress in other regions remains uneven. Europe, despite a robust pipeline of SAF projects and the introduction of the ReFuelEU Aviation Regulation—which mandates increasing SAF blend levels from 2025—faces constraints due to stringent sustainability criteria and high production costs. The European Commission’s new Sustainable Transport Investment Plan, which aims to mobilise approximately €100 billion across aviation and shipping sectors, seeks to accelerate the deployment of renewable and low-carbon fuels. Nevertheless, Europe still lags behind the capacity required to meet ICAO’s 5% emissions reduction target. Regions such as Latin America, Africa, and the Middle East are significantly behind in SAF development, hindered by limited operational capacity and a scarcity of advanced projects. IBA highlights that rapid investment acceleration and the establishment of enabling policy frameworks will be critical for these regions to meet their long-term climate objectives. Broader Market Dynamics and Innovation The global landscape for clean energy in aviation is shaped by a combination of market dynamics and regulatory pressures. North American companies continue to advance clean energy initiatives, driven not only by domestic policies but also by international regulations, market competition, and the potential profitability of clean technology investments. Global firms are increasingly motivated to comply with stringent European Union emissions standards and meet evolving customer expectations, even as some governments reduce federal climate commitments. Beyond aviation, the drive for decarbonisation is fostering innovation in other sectors. The emerging small modular reactor (SMR) market, for instance, is anticipated to play a significant role in reducing emissions across industrial sectors, with a projected global capacity of 700GW by 2050. Meanwhile, regions such as Australia face ongoing challenges in meeting renewable energy targets, with a heavy reliance on wind power and coal-fired stations underscoring the complexity of the energy transition. Globally, operational and planned SAF facilities are expected to supply only 4.5% of jet fuel by 2025, highlighting the substantial scale-up required to meet ICAO’s 2030 milestone and the broader 2050 net-zero commitments. As North America leads the way, the aviation sector’s ability to achieve its climate goals will depend on sustained investment, policy innovation, and international collaboration.

Kevin Carillon Appointed COO of CTS Engines Amid Industry Challenges CTS Engines has announced the appointment of Kevin Carillon as its new Chief Operating Officer, bringing over 25 years of extensive global leadership experience in the aerospace sector. This strategic move comes at a critical juncture for the company, as the engine manufacturing and maintenance industry grapples with increased scrutiny following widespread engine recalls affecting the broader automotive market. These developments pose significant challenges for CTS Engines, potentially impacting production timelines, profitability, and investor confidence. Extensive Leadership Experience and Global Expertise Carillon joins CTS Engines after a distinguished career at Pratt & Whitney, where he managed high-performance operations across the United States, Germany, and Singapore. His responsibilities encompassed oversight of large-scale manufacturing facilities, original equipment manufacturer (OEM) and maintenance, repair, and overhaul (MRO) production, as well as industrial planning for mature engine programs. Throughout his tenure, he successfully led major operational transformations and managed organizations exceeding 1,100 employees, consistently enhancing safety standards, quality, productivity, and financial outcomes. His international experience is further underscored by his role as Operations General Manager at Eagle Services Asia, a joint venture between Pratt & Whitney and Singapore Airlines Engineering Company. This global perspective is expected to be a vital asset for CTS Engines as it navigates a competitive environment where rivals may seek to exploit any operational weaknesses arising from industry-wide challenges. Strategic Operational Leadership at CTS Engines In his capacity as COO, Carillon will oversee all operational functions, including production, testing, quality assurance, safety, engineering, and continuous improvement initiatives. His mandate includes increasing throughput, optimizing operational processes, and delivering best-in-class support to CTS Engines’ global engine MRO clientele. Given the heightened market scrutiny and potential competitive pressures, Carillon’s leadership will be pivotal in sustaining the company’s operational excellence and reinforcing its competitive position. Carillon holds a Bachelor of Science degree in Mechanical Engineering from the University of Massachusetts and a Master of Science in Management with a specialization in Operations Management from Rensselaer Polytechnic Institute. He has also completed executive leadership programs at RTX, INSEAD, and the University of Virginia. With Carillon’s appointment, CTS Engines aims to fortify its market standing and effectively address the evolving challenges confronting the engine manufacturing and maintenance industry.

Qatar Airways Names Hamad Ali Al-Khater as New CEO Qatar Airways has announced the appointment of Hamad Ali Al-Khater as its new Group Chief Executive Officer, effective December 7, 2025. He succeeds Engr. Badr Mohammed Al-Meer, who has led the airline since 2023, steering it through a period marked by record growth and significant industry recognition. Leadership Transition Amidst Continued Success Al-Khater assumes leadership at a critical juncture for Qatar Airways, which recently secured its ninth ‘World’s Best Airline’ title at the 2025 World Airline Awards. The airline continues to expand its global reach, operating a fleet that serves over 170 destinations worldwide. This leadership change comes as the company seeks to sustain its momentum and further enhance its position in the competitive aviation sector. With over two decades of experience in aviation and strategic operations, Al-Khater is widely regarded for his operational expertise. Prior to his appointment, he served as Chief Operating Officer at Hamad International Airport, where he managed major infrastructure expansions and improved passenger services, contributing significantly to the airport’s reputation for excellence. His background also includes senior roles at QatarEnergy, where he oversaw large-scale projects and spearheaded business development initiatives. Expectations and Industry Outlook His Excellency Saad Sherida Al-Kaabi, Chairman of Qatar Airways Group, expressed strong confidence in Al-Khater’s appointment, highlighting his proven track record in operational excellence and strategic leadership. Al-Kaabi emphasized the airline’s commitment to building on its solid foundations and enhancing its global network to deliver exceptional travel experiences. Al-Khater’s leadership is anticipated to focus on maintaining the airline’s growth trajectory and profitability following Al-Meer’s departure. While his operational success at Hamad International Airport inspires optimism, some industry observers remain cautious about the potential impact of the leadership transition on Qatar Airways’ momentum. Regional competitors are expected to closely monitor any strategic shifts under the new CEO. During Al-Meer’s tenure, Qatar Airways achieved numerous milestones, including multiple ‘World’s Best Airline’ awards spanning from 2011 through 2025, as well as recognition for its business class, regional leadership, and service excellence. As Al-Khater takes the helm, the airline faces the challenge of preserving its industry-leading reputation while adapting to the evolving dynamics of global aviation. His experience in managing complex infrastructure projects and commitment to innovation are poised to play a pivotal role in guiding Qatar Airways through its next phase of growth.

Boeing Finalizes Acquisition of Spirit AeroSystems, Enhancing Aviation and Defense Operations Boeing has completed its $4.7 billion acquisition of Spirit AeroSystems, marking a pivotal development in the aerospace sector and signaling a strategic realignment for the company. This transaction reunites Spirit AeroSystems with Boeing after two decades of independent operation, with the objective of strengthening Boeing’s commercial and defense manufacturing capabilities, improving quality control, and bolstering supply chain resilience. Integration of Manufacturing and Defense Capabilities The acquisition includes all Boeing-related commercial operations of Spirit AeroSystems, notably the production of fuselages for the Boeing 737 program and major structural components for the 767, 777, and 787 Dreamliner aircraft. Additionally, it encompasses fuselage production for military platforms such as the P-8 maritime patrol aircraft and the KC-46 tanker. This expanded capacity enhances Boeing’s ability to produce critical components across both its commercial and defense portfolios. Kelly Ortberg, Boeing’s president and CEO, highlighted the strategic importance of the acquisition, emphasizing that it positions the company for sustained success by integrating essential manufacturing capabilities and expanding service offerings. The move addresses recent challenges related to production quality and supply chain disruptions by enabling Boeing to exercise greater control over its manufacturing processes through vertical integration. Expansion of Aftermarket Services and Defense Operations The acquisition also significantly impacts Boeing’s aftermarket services. Spirit AeroSystems, previously a major supplier of spare parts, will now allow Boeing to broaden its global maintenance, repair, and overhaul (MRO) operations. By internalizing these services, Boeing aims to provide more comprehensive support throughout the lifecycle of its aircraft, while strengthening its presence in the rotable, lease, and exchange markets. A distinctive feature of the deal is the creation of Spirit Defense as a non-integrated subsidiary within Boeing’s Defense, Space & Security division. To prevent conflicts of interest and ensure continuity for defense customers, Spirit Defense will maintain independent governance and management, operating separately from Boeing’s core defense business. This arrangement guarantees uninterrupted support for defense clients while enabling Spirit Defense to leverage Boeing’s resources and enterprise functions. Market Response and Industry Implications The market reacted favorably to the acquisition, with Boeing’s stock experiencing a notable increase following the announcement. Industry analysts regard the move as a decisive effort to resolve ongoing production and supply chain issues, while reinforcing Boeing’s leadership position in the global aerospace industry. Beyond its immediate effects on Boeing’s commercial and defense operations, the acquisition is anticipated to have wider ramifications for the aviation and tourism sectors worldwide. By consolidating key manufacturing and service capabilities, Boeing aims to deliver higher quality products and more reliable support, ultimately benefiting airlines, defense customers, and travelers globally.

GACA and Archer Sign MoU to Advance Air Taxi Deployment in Saudi Arabia The General Authority of Civil Aviation (GACA) of Saudi Arabia has formalized a memorandum of understanding (MoU) with Archer Aviation to expedite the introduction of electric vertical take-off and landing (eVTOL) aircraft throughout the Kingdom. This collaboration represents a pivotal element of GACA’s broader strategy to develop the Advanced Air Mobility (AAM) ecosystem, in alignment with Saudi Arabia’s AAM Roadmap and the National Transport and Logistics Strategy (NTLS). The initiative underscores the Kingdom’s commitment to pioneering next-generation air transport solutions. Regulatory Collaboration and Demonstration Efforts Under the terms of the agreement, GACA and Archer will work jointly to refine the regulatory framework governing eVTOL operations in Saudi Arabia. A key focus will be harmonizing these regulations with Federal Aviation Administration (FAA) certification standards to ensure interoperability, enhance safety protocols, and facilitate the phased expansion of air taxi services. The partnership will also involve conducting proof-of-concept demonstrations and experimental flights aimed at validating regulatory approaches, supporting the development of necessary infrastructure, and fostering public acceptance of electric air taxi services. Captain Sulaiman bin Saleh Al-Muhaimedi, Executive Vice President for Aviation Safety and Environmental Sustainability at GACA, highlighted the significance of the MoU, stating, “This MoU is an important step in advancing the Kingdom’s vision for Advanced Air Mobility. By working with global partners such as Archer, we continue to strengthen the regulatory and operational foundations needed to safely integrate eVTOL aircraft into our aviation system. The initiative supports the AAM Roadmap and reinforces the Kingdom’s position as a regional leader in next-generation air transport.” Expanding Partnerships and Regional Leadership Archer’s engagement with GACA builds upon its existing collaborations within Saudi Arabia, including partnerships with The Helicopter Company and Red Sea Global to establish eVTOL testing environments. These efforts align with Saudi Arabia’s ambition to become an early adopter and regional leader in advanced air mobility technologies. Adam Goldstein, Archer’s Founder and CEO, remarked, “Saudi Arabia is moving with impressive speed and clarity to build a next-generation mobility ecosystem, and we are honored that GACA has chosen to work with Archer in this transformative effort. Harmonizing our certification work with the FAA and launching early demonstration operations in the Kingdom will help lay the groundwork for bringing safe, sustainable, and efficient air taxi travel to millions of people.” The Kingdom’s dedication to advancing air mobility is further evidenced by similar initiatives from other industry players. Joby Aviation has announced plans to deploy its electric air taxi services in Saudi Arabia, collaborating with GACA to establish an approval process aligned with FAA certification standards. These multi-faceted partnerships are positioning Saudi Arabia at the forefront of regional innovation in air mobility. Beyond Saudi Arabia, Archer is pursuing international expansion of its air taxi network, including plans to launch an electric air taxi service in Miami. This network aims to connect regional airports with properties owned by Miami Dolphins owner Stephen Ross, who is also developing a vertiport in West Palm Beach. As Saudi Arabia continues to invest in advanced air mobility, these strategic collaborations are expected to accelerate the integration of eVTOL aircraft into urban and regional transport systems, supporting the Kingdom’s vision for sustainable and innovative mobility solutions.

Aerospace Supply Chain Delays Continue to Impact Airlines Persistent Supply Constraints Hampering Industry Growth Geneva – The International Air Transport Association (IATA) has issued a stark warning regarding ongoing bottlenecks in the aerospace supply chain that continue to restrict airline expansion. Aircraft availability remains a critical challenge, with demand for new planes and engines significantly outstripping supply. According to IATA’s latest global outlook, although deliveries of new aircraft began to recover in late 2025 and production is expected to accelerate throughout 2026, the industry will face a prolonged period of supply shortages. The current delivery shortfall stands at a minimum of 5,300 aircraft, while the backlog of orders has surged past 17,000 units. This backlog now represents nearly 60% of the active global fleet and corresponds to almost 12 years of production at current rates—a substantial increase from the historical backlog ratio of 30 to 40%. The average age of the global fleet has risen to 15.1 years, with passenger aircraft averaging 12.8 years, cargo planes 19.6 years, and wide-body jets 14.5 years. Paradoxically, despite the shortage of new aircraft, over 5,000 planes remain in storage, marking one of the highest levels on record. Willie Walsh, IATA’s Director General, highlighted the broad impact of these supply chain challenges on airlines. He noted that higher leasing costs, diminished scheduling flexibility, delayed progress on sustainability initiatives, and increased reliance on less efficient aircraft types are among the most pressing issues. These factors collectively hinder airlines’ ability to enhance revenue, improve environmental performance, and deliver optimal customer service. Walsh also pointed out that travelers are facing higher costs due to the tighter demand-supply balance, urging all stakeholders to intensify efforts to resolve these issues before the situation worsens. Underlying Causes of Delivery Delays Several interrelated factors are contributing to the persistent delays in aircraft deliveries. Production imbalances have emerged as a key issue, with airframe manufacturing outpacing engine production. Engine supply remains constrained by ongoing technical challenges, resulting in completed airframes being held in storage while awaiting engines. Certification processes for new aircraft have also lengthened significantly, extending from the typical 12 to 24 months to as long as four or five years, particularly affecting the renewal of long-haul fleets. Trade tensions, especially US-China tariffs on metals and electronics, have further exacerbated supply chain bottlenecks and increased maintenance costs. Additionally, labor shortages, particularly in engine and component manufacturing, are impeding efforts to ramp up production. The aerospace supply chain’s fragility is underscored by its heavy reliance on a limited number of suppliers for critical parts, meaning that even minor disruptions can escalate into significant delays. Industry Responses and Strategic Adjustments In response to these challenges, major aerospace manufacturers are adopting new strategies to enhance supply chain resilience and production efficiency. Boeing, for instance, is pursuing greater vertical integration to improve quality control and reduce dependency on external suppliers. This approach, while promising, may encounter initial integration difficulties. Boeing’s recent acquisition of Spirit AeroSystems has been positively received by the market, as reflected in a surge in its stock price, signaling investor confidence in the company’s efforts to regain control over key components. Other industry players are also adapting to the evolving landscape. Taiwan’s Aerospace Industrial Development Corporation (AIDC) is investing in material innovations such as thermoplastic composites, aiming to streamline production processes and reduce reliance on traditional supply chains. Meanwhile, GE Aerospace has maintained an optimistic outlook, having raised its financial guidance and secured significant contracts, including a major engine deal with Turkish Airlines and the inauguration of a new On Wing Support facility in Dubai. As the aerospace sector continues to navigate these complex disruptions, IATA stresses the urgent need for coordinated action among manufacturers, suppliers, and regulators. Such collaboration is essential to restore equilibrium between supply and demand and to support the industry’s long-term growth and sustainability objectives.