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IATA Identifies Supply Chain Disruptions as Aviation’s Primary Challenge

IATA Identifies Supply Chain Disruptions as Aviation’s Primary Challenge
In 2025, the global air transport industry encountered significant obstacles, with supply chain disruptions emerging as the foremost challenge, according to Willie Walsh, Director General of the International Air Transport Association (IATA). Walsh revealed that delays in the delivery of new aircraft and engines resulted in losses exceeding $11 billion for airlines last year, as carriers struggled to meet the surging demand for air travel.
Impact of Supply Chain Disruptions on Airlines
Walsh described supply chain issues as the most acute problem faced by airlines in 2025. The demand for travel outpaced the industry’s capacity, leading to repeated delays in aircraft and engine deliveries, shortages in maintenance resources, and escalating costs. These disruptions compelled airlines to extend the operational lifespan of existing aircraft and optimize flight utilization. With load factors approaching 84%, such measures helped manage peak demand temporarily. However, Walsh cautioned that these strategies are short-term fixes, emphasizing the necessity for a sustainable solution. He expressed optimism that 2025 represented the nadir of these challenges, with 2026 expected to show signs of recovery.
The aviation sector’s supply chain difficulties are further exacerbated by broader industrial and geopolitical factors. Leading manufacturers such as Airbus and Boeing continue to face persistent bottlenecks. Additionally, tariffs, trade uncertainties, labor shortages, rising material costs, and volatility in freight markets have compounded logistical and operational strains. These issues have slowed the pace of airline traffic growth and complicated efforts to restore the industry to pre-pandemic levels.
Growth Trends and the Dual Challenge of Decarbonization
Data from IATA indicate that global air travel demand increased by 5.3% in 2025, with international traffic rising 7.1% and domestic travel growing by 2.4%. Following a sharp rebound after the pandemic, the industry has settled into more typical and sustainable growth rates. Nevertheless, this steady expansion has highlighted two critical challenges: the need for decarbonization and the persistence of supply chain instability.
Walsh underscored decarbonization as the foundation for the industry’s long-term development, calling for urgent innovation and supportive government policies. He echoed the sentiments of industry leaders, including Bill Gates, advocating for accelerated advancements in the energy sector and increased production of sustainable aviation fuel. Walsh stressed that countries dependent on aviation for economic growth must implement fiscal policies that encourage these developments to ensure both environmental and economic sustainability.
He further noted that every new aircraft delivered contributes to a quieter, more environmentally friendly fleet with greater capacity and expanded route options—outcomes eagerly anticipated by both airlines and passengers.
As the aviation industry looks ahead to 2026, addressing supply chain disruptions and advancing decarbonization remain central to its strategic priorities.

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