2025 Outlook on AI in Travel and Airlines

Pratt & Whitney Launches European Center to Drive Sustainable Aircraft Propulsion Pratt & Whitney, a subsidiary of the U.S.-based RTX Corporation, has officially opened its European Technology and Innovation Center (ETIC) in Houten, the Netherlands. Originally announced for early 2025, the facility is now operational and dedicated to advancing propulsion technologies that enhance energy efficiency and performance in future commercial aircraft. This marks Pratt & Whitney’s first independent innovation hub in Europe, complementing its existing engineering centers across North America, Poland, and other global locations. Focus on Sustainable Propulsion and Collaboration The ETIC is designed to accelerate the development of transformative technologies, including advanced gas turbine systems, hybrid-electric propulsion, and hydrogen-powered engines. By leveraging the Netherlands’ strong aerospace ecosystem, Pratt & Whitney aims to foster collaboration with industry partners and academic institutions to drive progress toward sustainable aviation. Michael Thacker, senior vice president of Engineering and Technology at Pratt & Whitney, emphasized the strategic importance of the center, noting the country’s rich engineering talent and history of aerospace innovation as key factors in its establishment. The Dutch government has expressed strong support for the initiative, highlighting its alignment with national objectives to promote sustainable aviation. Tjerk Opmeer, deputy director-general for business and innovation at the Ministry of Economic Affairs, described the center as a vital component in accelerating innovation through international cooperation. The ETIC is co-located with Collins Aerospace’s European Innovation Hub, another RTX subsidiary, further expanding the company’s footprint in the Netherlands. This development builds on recent partnerships, including agreements with the Netherlands Aerospace Group and a master research collaboration with Delft University of Technology (TU Delft). Pratt & Whitney has also established a dedicated office within TU Delft’s Aerospace Innovation Hub, reinforcing its commitment to close ties with the academic and research community. Professor Henri Werij, Dean of TU Delft’s Faculty of Aerospace Engineering, underscored the significance of such partnerships in cultivating the technologies and talent essential for the future of sustainable aviation. Navigating Industry Challenges Amid Innovation The inauguration of the ETIC comes at a critical juncture for Pratt & Whitney, which continues to address challenges related to its multi-year GTF engine recall that has grounded hundreds of aircraft and affected market confidence. In response, the company has secured European validation for its GTF Advantage engine, aiming to strengthen its competitive position. Pratt & Whitney also plans to increase GTF engine production by 8 to 10 percent in 2025, signaling a strategic effort to regain market share amid intense competition. Meanwhile, industry rivals such as General Electric are advancing their own propulsion technologies, with GE preparing to deliver its 500th Passport turbofan engine. Despite these hurdles, Pratt & Whitney’s investment in the European Technology and Innovation Center underscores its commitment to sustainable aviation and its determination to maintain leadership in propulsion technology development.

Archer Aviation Acquires Hawthorne Airport for $126 Million Archer Aviation, a leading manufacturer of electric vertical takeoff and landing (eVTOL) aircraft, has acquired Hawthorne Municipal Airport in Los Angeles for $126 million. This strategic purchase marks a significant milestone in the company’s vision to revolutionize urban mobility by introducing air taxis as a viable alternative to the city’s notorious traffic congestion. A Strategic Bet on Urban Air Mobility The acquisition of a historic airfield in the heart of Los Angeles is more than a symbolic gesture. Archer aims to transform Hawthorne Airport into a central hub for next-generation air taxi operations, positioning itself at the forefront of the emerging urban air mobility sector. The company’s ambition reflects a broader industry trend toward integrating electric aircraft into everyday transportation, offering commuters a potential escape from the city’s gridlock by taking to the skies. However, the path to realizing this vision is fraught with challenges. Archer must navigate a complex regulatory landscape involving federal, state, and local aviation authorities. Ensuring the safe and efficient operation of eVTOL aircraft alongside traditional planes will require significant technological innovation and rigorous compliance with aviation standards. Market Response and Competitive Landscape The financial implications of the acquisition have elicited a cautious response from investors. Following the announcement of a $650 million share sale intended to finance the airport purchase, Archer’s stock price declined by 12 percent. This reaction underscores investor concerns regarding the substantial costs and risks associated with the company’s ambitious expansion. Archer’s move has also intensified competition within the urban air mobility industry. Rivals such as Joby Aviation are closely monitoring developments, likely accelerating their own efforts to secure regulatory approvals and establish market presence. The acquisition signals a new phase in the race to dominate urban airspace, particularly in major metropolitan areas like Los Angeles. Archer Aviation’s purchase of Hawthorne Airport represents a bold leap toward the future of transportation. The company’s ability to overcome regulatory, technological, and competitive obstacles will determine whether this initiative sets a precedent for urban air mobility or serves as a cautionary example of ambition confronting practical realities. Meanwhile, the prospect of aerial commuting in Los Angeles moves closer to becoming a tangible option for the city’s residents.

Israel’s Iron Beam Laser System Honored with 2026 Aviation Week Laureate Award The Israel Ministry of Defense’s Directorate of Defense Research and Development (DDR&D), in partnership with Rafael Advanced Defense Systems and Elbit Systems, has been awarded the prestigious 2026 Aviation Week Network Laureate Award for the development of the Iron Beam laser interception system. This recognition celebrates the creation of the world’s first high-energy laser capable of effectively intercepting rockets, missiles, and unmanned aerial vehicles, marking a significant milestone in missile defense technology. Advancing Missile Defense with High-Energy Laser Technology The Iron Beam system, developed collaboratively by DDR&D (MAFAT), Rafael, and Elbit Systems, has proven its operational capabilities through a series of successful tests, neutralizing threats such as rockets, mortars, and drones. Designed to deliver a rapid, cost-efficient, and precise response to evolving aerial threats, Iron Beam represents a transformative advancement in defense systems. Its deployment underscores the increasing strategic importance of high-energy laser technology in modern military applications. Established in 1957, the Aviation Week Laureate Awards are among the most esteemed honors in the aerospace and defense sectors worldwide. They recognize groundbreaking innovation and outstanding contributions to the international aerospace community. The Ministry of Defense highlighted that this accolade affirms Israel’s position at the forefront of global aerospace and defense innovation. Implications for Global Defense and Market Dynamics While Iron Beam’s success marks a technological breakthrough, integrating such advanced laser systems into existing defense infrastructures poses challenges. These include significant financial investments and the need for continuous technological enhancements to counter increasingly sophisticated missile threats. The award is anticipated to influence defense market dynamics, potentially driving increased budgets and procurement efforts as nations seek to adopt similar cutting-edge technologies. In response to Israel’s achievement, competitors are expected to accelerate their own development of laser-based defense solutions and pursue international partnerships to maintain technological competitiveness. The recognition of Iron Beam with the 2026 Aviation Week Laureate Award not only underscores Israel’s leadership in defense innovation but also signals a broader shift in missile defense strategies worldwide, as high-energy laser systems become integral to future security frameworks.

IAE Reaffirms Commitment to Geared Turbofan Engines for Future Narrowbody Aircraft International Aero Engines (IAE), a consortium comprising Japan Aero Engines Corporation (JAEC), MTU Aero Engines, and Pratt & Whitney, has reiterated its dedication to geared turbofan (GTF) technology as the cornerstone for next-generation single-aisle aircraft propulsion. This declaration arrives amid ongoing industry deliberations over propulsion options for future narrowbody platforms, with major airframers such as Airbus actively exploring successors to the A320 family. Strategic Positioning Amid Emerging Propulsion Technologies Although the joint statement does not explicitly mention Airbus, its timing reflects the competitive dynamics shaping the engine manufacturing sector. Emerging propulsion concepts—including open-fan engines, hydrogen combustion turbines, and hybrid-electric systems—are increasingly prominent in industry discourse. By emphasizing the maturity and upgrade potential of the GTF, IAE advocates for an evolutionary approach that mitigates risk compared to disruptive new architectures, which would necessitate extensive airframe redesigns. JAEC Chairman Tsugio Mitsuoka highlighted the consortium’s longstanding collaboration, noting that IAE has delivered and supported two of the most significant commercial engine programs in aviation history: the V2500 and the GTF engines. He described the GTF and its Advantage upgrade as the optimal foundation for the forthcoming generation of single-aisle aircraft. Pratt & Whitney President Shane Eddy underscored that while the consortium remains focused on future applications, the immediate priority is stabilizing and supporting the existing GTF fleet. Addressing Reliability Challenges and Market Demands This renewed affirmation of unity comes amid persistent reliability issues affecting the in-service GTF fleet, particularly the Pratt & Whitney PW1500G engines that power the Airbus A220. Airlines such as Swiss International Air Lines have encountered operational disruptions, including reduced flight hours and grounded aircraft, attributable to these challenges. The market response has been significant, prompting Pratt & Whitney to announce plans to increase GTF production by 8 to 10 percent in 2025 despite ongoing recalls. Operators of GTF-powered A320neo-family aircraft continue to experience elevated maintenance demands, with increased shop visits and extended downtimes. The consortium is prioritizing technical cohesion and continuity to restore engine availability and alleviate maintenance bottlenecks. MTU CEO Johannes Bussmann emphasized the company’s expanding maintenance, repair, and overhaul (MRO) capabilities to meet the growing demand for GTF overhauls and support the expanding fleet. Meanwhile, the V2500 program, IAE’s legacy engine, remains a stable revenue source, having surpassed 300 million flight hours and powering approximately 2,800 aircraft worldwide. Navigating a Competitive and Evolving Propulsion Market The propulsion market is witnessing intensified competition. GE Aerospace recently marked the delivery of its 500th Passport engine, while Hindustan Aeronautics Limited’s collaboration with Russia to manufacture the Sukhoi Superjet-100 presents a potential challenge to Boeing and Airbus in the regional aircraft segment. Looking forward, IAE’s long-term development efforts concentrate on advanced materials, high-efficiency aerodynamics enabled by high-performance computing, a smaller high-speed core, and hybrid-electric capabilities. The consortium contends that a second-generation GTF, informed by real-world experience expected to exceed 300 million flight hours by the mid-2030s, offers a lower-risk pathway for future narrowbody aircraft compared to unproven clean-sheet propulsion concepts. As airframers evaluate propulsion options for the next generation of single-aisle aircraft, IAE is positioning the GTF’s proven track record and upgrade potential as a decisive competitive advantage.

Why United Airlines Continues to Operate Its Aging Boeing 757s The Boeing 757, a stalwart of commercial aviation since its introduction in 1983, is approaching the end of its operational lifespan. Production of the aircraft ceased in 2004, and many airlines have since retired their 757 fleets or converted them into freighters. Despite this trend, United Airlines remains the second-largest operator of the type, continuing to fly 61 Boeing 757s—comprising 40 757-200s and 21 757-300s—with an average age nearing 27 years. United has announced plans to retire its remaining 757s by 2026, but the airline’s prolonged use of these aging aircraft is driven by a combination of strategic, economic, and operational factors. The 757’s Strategic Role in United’s Network The Boeing 757 occupies a unique position within United’s route network, serving markets that are not well-suited to either widebody jets or standard narrowbody aircraft. Its range and capacity enable the airline to operate seasonal transatlantic flights to secondary European cities, as well as thinner domestic routes across the United States. These missions would be less efficient or even unfeasible with other aircraft types, granting United a competitive advantage in these niche markets. The 757’s ability to bridge the gap between narrowbody and widebody operations has made it an indispensable asset for the airline. Economic Considerations and Fleet Synergies From a financial perspective, continuing to operate the 757 fleet remains advantageous for United. The aircraft are fully depreciated, which enhances profit margins despite the higher maintenance costs associated with older planes. Furthermore, the 757 shares considerable commonality with the Boeing 767, another key component of United’s fleet, with 53 units in operation. This overlap reduces expenses related to maintenance, parts inventory, and crew training, generating economies of scale that support the airline’s overall cost structure. Industry Trends and Competitive Landscape United’s reliance on the 757 persists amid evolving industry dynamics and competitive pressures. Other carriers, such as Condor Technik, are modernizing their fleets by phasing out older 757s and 767s in favor of more fuel-efficient Airbus A330neo and A320neo aircraft. American Airlines is shifting its focus toward premium services, reflecting a broader market trend toward enhanced passenger experiences and elevated service standards. Despite these developments, United continues to operate routes like those to Mexico City, even as low-cost competitors such as Volaris and Viva Aerobus offer lower fares. This underscores United’s commitment to maintaining its established network strategy despite external challenges. Operational Challenges and Market Risks United faces several operational risks related to its aging 757 fleet. CEO Scott Kirby has highlighted the potential impact of extended government shutdowns on bookings and overall operations. As the global 757 fleet diminishes, sourcing spare parts becomes increasingly difficult, driving up maintenance costs and complexity. Additionally, the 757’s older design results in lower fuel efficiency compared to newer aircraft, and tightening sustainability regulations further erode the economic and environmental justification for continued operation. Passenger Experience and the Search for a Successor While some passengers appreciate the 757’s comfort relative to other narrowbodies such as the Airbus A320 or Boeing 737, the aircraft falls short of the quieter cabins and modern amenities offered by newer widebody jets, particularly on transatlantic flights. The absence of a direct replacement has extended the 757’s service life; Boeing never introduced a successor model, and the anticipated “Boeing 797” has yet to materialize. This lack of a clear alternative has compelled United to retain the 757 longer than initially planned. Approaching the End of an Era United’s decision to continue operating its aging Boeing 757s reflects a nuanced balance of operational requirements, financial considerations, and competitive realities. However, with rising maintenance expenses, shifting market expectations, and increasing environmental pressures, the airline’s reliance on the 757 is nearing its conclusion. The future of United’s fleet strategy will depend on identifying suitable replacements capable of replicating the 757’s distinctive combination of range, capacity, and operational flexibility in an industry undergoing rapid transformation.

Etihad Considers Additional Airbus A350 and A330neo Orders Amid Market Shifts Etihad Airways is reportedly engaged in advanced discussions with Airbus regarding a potential order for additional A350 and A330neo aircraft, with an official announcement anticipated at the forthcoming Dubai Airshow. The Abu Dhabi-based carrier is exploring options to enhance its long-haul fleet as part of a broader strategy focused on network and fleet optimization. Current Fleet and Potential Expansion At present, Etihad holds firm orders for 20 Airbus A350-1000s, of which nine have already been delivered. The airline has also recently committed to acquiring seven A350F freighters. Industry analysts suggest that the A350-900, the most widely adopted variant in the A350 family, may also be under consideration. Additionally, the A330-900neo emerges as a likely candidate, signaling a possible return to the A330 family after Etihad retired its previous fleet of 36 A330-200s and six A330-300s in 2020. This potential shift towards Airbus could mark a departure from Etihad’s recent emphasis on expanding its Boeing widebody fleet. Currently, the airline operates 47 Boeing 787 Dreamliners, comprising 37 787-9s and 10 787-10s, both offering capacities comparable to the A330neo. Earlier this year, Etihad placed an additional order for 28 Boeing 787 and 777X aircraft, underscoring its ongoing commitment to Boeing products. Market Context and Competitive Landscape Etihad’s consideration of further Airbus orders comes amid fluctuating market demand and broader industry caution. Several carriers, including Wizz Air, have recently deferred delivery schedules and scaled back commitments, reflecting uncertainty in the aviation sector. Meanwhile, competitors such as LATAM Airlines Group are reportedly contemplating widebody fleet expansions with Airbus, and Vietjet has solidified orders for 100 Airbus A321neos, highlighting sustained interest in Airbus’s product lineup. Airbus’s robust financial performance and the recent delivery of the first A330neo to Hainan Airlines underscore continued demand for its neo series. However, the competitive environment remains dynamic. The European Union’s recent conditional approval of Boeing’s acquisition of Spirit AeroSystems—requiring the divestment of Airbus-related activities—could have indirect implications for Airbus’s supply chain and its relationships with customers like Etihad. As Etihad navigates its fleet strategy, it must balance its operational requirements with evolving market dynamics and competitive pressures. The outcome of these deliberations, potentially revealed at the Dubai Airshow, may significantly influence the airline’s long-haul operations and broader trends within the global widebody aircraft market.

UAE Launches Hili, Its First Hybrid Cargo Plane A Milestone in Sustainable Aviation The United Arab Emirates has unveiled Hili, the nation’s first hybrid autonomous cargo aircraft, marking a significant breakthrough in global logistics and sustainable air transport. Developed entirely by the Emirati company LOOD Autonomous, Hili was designed, developed, and manufactured within the UAE. Its successful maiden flight was witnessed by Sheikh Zayed bin Mohammed bin Zayed Al Nahyan, underscoring the country’s commitment to innovation in aviation. This achievement positions the UAE at the forefront of sustainable air transport technology and marks the first time the region has produced a civilian heavy cargo aircraft capable of operating without the need for traditional airports. Hili represents a new era in aviation, combining the vertical take-off and landing capabilities of a helicopter with the cruising efficiency of an airplane. Launched in November 2025 under the supervision of the UAE Ministry of Economy and the General Civil Aviation Authority (GCAA), the aircraft is a pioneering development for both Emirati aviation and the global logistics sector. Advanced Hybrid Technology and Operational Capabilities Unlike conventional drones or cargo planes, Hili employs a hybrid propulsion system that integrates electric and fuel power. This combination offers an extended range and improved efficiency, positioning the UAE as a leader in sustainable air freight technology. Designed specifically for the “middle mile” segment—the critical stage between warehouses and airports—Hili addresses the need for speed, flexibility, and environmental responsibility in cargo transport. The aircraft features a payload capacity of approximately 250 kilograms and can cover distances of up to 300 kilometres per flight, setting a new benchmark for middle-mile logistics operations. Its sleek, lightweight composite frame is powered by dual propulsion systems, allowing it to switch seamlessly between electric lift for vertical take-off and fuel-assisted flight for long-range cruising. The integrated AI-assisted flight management system enhances stability and route efficiency, further advancing the aircraft’s operational capabilities. Strategic Partnerships and Future Prospects Hili’s development has attracted attention from aviation authorities, cargo companies, and sustainability advocates worldwide. A senior official from the GCAA emphasized during the unveiling that “hybrid flight technology is no longer a vision — it’s an Emirati reality.” This sentiment reflects the broader ambition to establish the UAE as a global hub for advanced air mobility (AAM). In a significant industry collaboration, Etihad Cargo has announced plans to conduct exploratory trials of Hili for regional logistics operations. The airline, which has already been testing advanced cargo drones, aims to integrate hybrid aircraft into its freight routes connecting Abu Dhabi, Dubai, and Al Ain by 2026. This initiative seeks to create dedicated air corridors for autonomous cargo movement, reducing travel times, alleviating road congestion, and cutting emissions. Etihad Cargo’s Chief Executive described the hybrid cargo segment as “the next wave of supply chain disruption,” affirming the UAE’s leadership role in this emerging field. The partnership between Etihad Cargo and LOOD Autonomous underscores a shared vision to transform the Emirates into a global centre for innovative and sustainable air freight solutions.

Joby Completes First Flight of Turbine-Electric Demonstrator Aircraft **Santa Cruz, CA – November 13, 2025** – Joby Aviation, Inc. (NYSE: JOBY) has successfully completed the maiden flight of its turbine-electric, autonomous vertical takeoff and landing (VTOL) demonstrator aircraft, marking a pivotal advancement in the company’s efforts to enhance its electric air taxi platform. This new demonstrator features a hybrid turbine powertrain combined with Joby’s proprietary SuperPilot™ autonomy system, designed to extend range and payload capacity for both commercial and defense applications. Rapid Development and Strategic Partnerships The inaugural flight occurred on November 7 at Joby’s facility in Marina, California, just three months after the company revealed the hybrid concept alongside its strategic partnership with L3Harris Technologies (NYSE: LHX). This swift progression highlights Joby’s commitment to vertical integration and reflects the accelerated development pace of dual-use aerospace technologies. The hybrid aircraft is engineered to support a variety of missions, ranging from extended-range air taxi services to specialized defense operations. L3Harris will adapt the platform for military use, focusing on contested logistics, “loyal wingman” support, and low-altitude missions. The U.S. government has demonstrated considerable interest in such resilient, autonomous, and hybrid aircraft, requesting over $9 billion in the fiscal year 2026 budget for next-generation platforms. JoeBen Bevirt, CEO and Founder of Joby, emphasized the importance of rapid and cost-effective technology delivery to American troops, noting that the company’s vertical integration enables an unprecedented pace from concept to deployment in aerospace and defense. Progress Toward Certification and Dual-Use Strategy This milestone flight coincides with Joby’s ongoing efforts to secure Federal Aviation Administration (FAA) type certification for its all-electric platform, which has already accumulated more than 50,000 miles of flight testing. Power-on testing of Joby’s first turbine-electric demonstrator aircraft is currently underway, signaling steady progress toward commercial operations. The SuperPilot™ autonomy stack, under development for over five years, has been validated in government exercises such as REFORPAC, underscoring its operational readiness. Joby’s dual-use approach is central to its business model, leveraging defense contracts to support the development and scaling of commercial air taxi services. Bevirt highlighted the reciprocal value of dual-use technology, explaining that advancements in hybrid and autonomous systems for defense applications accelerate their readiness for commercial markets, including longer-range VTOL missions and autonomous urban airspace operations. Market Context and Future Outlook Investor response to Joby’s announcement has been largely positive, reflecting confidence in the technology’s potential across military and civilian sectors. Nonetheless, the company faces challenges related to scaling production and navigating complex regulatory environments as it prepares for broader deployment. Competitors such as Archer and Vertical Aerospace are also advancing in the urban air mobility sector, intensifying competition to establish viable networks for electric and hybrid VTOL aircraft. Joby and L3Harris remain on schedule to commence government mission demonstrations with the hybrid aircraft in 2026, following continued ground and flight testing. As Joby approaches the final stages of FAA certification, its progress signals a significant step forward for hybrid-electric aviation and the integration of dual-use aerospace technologies.

Lufthansa Technik Launches Innovative ‘Nice Intellitable’ Touchscreen System for Aircraft Cabins Lufthansa Technik has introduced its latest advancement in cabin technology with the unveiling of the ‘nice intellitable’ system at the Dubai Airshow. This new development builds upon the company’s acclaimed ‘Hidden Touch Display’ technology by miniaturising and embedding a high-definition touchscreen directly into the surface of a folding tray table. The result is a sophisticated integration of digital functionality with premium tactile design, offering passengers an enhanced interactive experience without compromising cabin aesthetics. Seamless Integration and Customisable Design The ‘nice intellitable’ system is designed to present interactive features only when activated by the passenger, allowing the touchscreen interface to disappear smoothly into the table’s slim surface when not in use. This innovation enables control elements to blend harmoniously with the cabin décor, with customisable finishes that replicate materials such as wood, carbon fibre, or metal to complement various interior styles. Unlike previous wall-mounted control panels, the fully customisable tray table expands the scope of integrated options, serving both as a practical workspace and a discreet control hub. The demonstrator model showcases a range of functionalities including real-time flight information with a moving map, seat adjustment controls, food and beverage previews with ordering capabilities, multimedia players, and a digital magazine flip book. During dining, the touch interface can be minimised to a narrow strip along the table’s edge or completely deactivated. The surface is engineered to resist spills and endure the mechanical stresses of cutlery use, ensuring durability and practicality in everyday cabin conditions. Industry Context and Market Challenges Andrew Muirhead, Vice President of Original Equipment and Special Aircraft Services at Lufthansa Technik, highlighted the company’s commitment to bridging the gap between traditional cabin control systems and actual passenger interaction. He noted that conventional control interfaces often feel bulky and outdated, prompting Lufthansa Technik to rethink how technology can be more cohesively integrated with interior design. “The ‘nice intellitable’ exemplifies this approach, redefining VIP, commercial business, and first-class cabins through more intuitive and seamless technology that prioritises both passenger experience and airline requirements,” Muirhead stated. The launch of the ‘nice intellitable’ arrives amid intensified competition and scrutiny within the aircraft maintenance and cabin innovation sectors. Industry analysts observe that improvements in Rolls-Royce’s Trent 1000 engine durability may redirect market focus and resources, potentially challenging Lufthansa Technik’s efforts to gain traction with its new system. Furthermore, recent operational difficulties faced by the Lufthansa Group have led to some scepticism regarding the promised efficiency gains of the interface. Competitors are expected to accelerate their own innovation initiatives in maintenance and cabin systems, which could heighten competition and potentially trigger a price war within the sector. As airlines and VIP operators evaluate the adoption of emerging technologies, Lufthansa Technik’s ‘nice intellitable’ will need to demonstrate tangible benefits in both passenger experience and operational efficiency to secure a competitive position in this rapidly evolving market.

Oman Air Grounds Aircraft and Revises Flight Schedules Amid Supply Chain Disruptions Oman Air has temporarily grounded several aircraft and adjusted its flight schedules in response to persistent global supply chain disruptions, the state-owned airline announced on Thursday. The carrier is working closely with manufacturers to expedite the return of affected planes to service and to minimize inconvenience for passengers. The airline is also reorganizing bookings, transferring travelers to alternative flights as part of its standard operational procedures. Impact of Global Supply Chain Challenges on Aviation The aviation sector continues to face severe supply chain pressures that originated during the Covid-19 pandemic and have since intensified. According to the International Air Transport Association (IATA), these disruptions are projected to cost airlines more than $11 billion in 2025. The industry is currently contending with a record backlog of over 17,000 aircraft in 2024, a significant increase from the average annual backlog of approximately 13,000 aircraft between 2010 and 2019. Aircraft deliveries have also declined sharply, with only 1,254 expected this year—roughly 30 percent below pre-pandemic levels. These challenges have compelled airlines to operate older aircraft, resulting in higher fuel consumption and increased maintenance expenses. Many carriers have resorted to leasing additional engines and spare parts to sustain operations. Engine-related issues alone have grounded hundreds of planes worldwide, further constraining capacity. While some manufacturers, such as Embraer, have managed to meet production targets despite these difficulties, most airlines are adjusting flight schedules and fleet management strategies to navigate the ongoing crisis. Oman Air’s Response and Industry Outlook Oman Air expressed regret for any inconvenience caused by the schedule changes and reaffirmed its commitment to ensuring the safety and comfort of its passengers and crew. Speaking at the Skift Global East Forum last month, Oman Air’s Chief Executive, Con Korfiatis, highlighted the financial pressures facing the industry. He noted that although airfares have historically declined in real terms, post-pandemic cost bases have surged dramatically. Maintenance costs for engines have doubled or nearly tripled for certain aircraft types, while delivery delays and rising airport fees have further increased expenses. Korfiatis warned that the persistent demand for lower airfares amid rising costs could reach a breaking point, posing significant challenges for the sector. In response, Oman Air is implementing a comprehensive turnaround plan that includes cutting unprofitable routes, simplifying its fleet, reducing operational costs, and resizing its workforce. The airline aims to achieve break-even financial performance by 2027 as part of a restructuring initiative launched at the end of 2023. Despite the difficulties posed by the global supply chain crisis, Oman Air emphasized its ongoing efforts to restore normal operations and support passengers affected by the disruptions.