If you’re curious about the reason so many planes have been grounded for an extended time since the pandemic, why aircraft deliveries are behind schedule, and why some airlines are facing a shortage of planes, it’s because of ongoing supply chain challenges and disruptions in the parts supply chain. This issue is having a substantial impact on airlines globally. The International Air Transport Association (IATA) has projected that severe supply chain disruptions will continue affecting airlines until 2025, hampering growth and increasing operational costs. The situation, which has already impacted the global fleet and delivery schedules, poses challenges for the industry’s financial recovery and environmental goals.
Aging Fleets and Delivery Delays
IATA’s latest industry outlook highlights how supply chain challenges are reshaping the airline landscape. The average age of the global fleet has reached 14.8 years, a notable increase from the historical average of 13.6 years recorded between 1990 and 2024. Aircraft deliveries have also declined significantly, with 2024 seeing an estimated 1,254 deliveries compared to the 1,813 aircraft delivered in 2018. These challenges stem from ongoing supply chain disruptions that hinder delivery schedules.
For 2025, the forecast shows a potential rise to 1,802 deliveries, but this remains far below the earlier projection of 2,293. The backlog of unfulfilled aircraft orders now totals 17,000 planes—a record high. At current delivery rates, fulfilling these orders would take 14 years, double the six-year backlog observed from 2013 to 2019. However, delivery rates are expected to increase gradually, potentially reducing wait times.
The number of parked aircraft further illustrates the challenges. As of December 2024, 14% of the global fleet, or approximately 5,000 aircraft, remain grounded. Although this marks some improvement, the figure is still four percentage points higher than pre-pandemic levels. Around 700 of these aircraft, representing 2% of the total fleet, are parked due to engine inspections, a trend likely to persist into 2025 due to ongoing supply chain challenges and delays.
Financial and Environmental Implications
Supply chain disruptions have created a ripple effect across the industry. Airlines face a “triple whammy” of reduced revenues, increased costs, and hampered environmental performance. Willie Walsh, IATA’s Director General, expressed frustration at these ongoing challenges, stating:
“Supply chain issues are frustrating every airline with a triple whammy on revenues, costs, and environmental performance. Load factors are at record highs and there is no doubt that if we had more aircraft they could be profitably deployed, so our revenues are being compromised. Meanwhile, the aging fleet that airlines are using has higher maintenance costs, burns more fuel, and takes more capital to keep it flying. And, on top of this, leasing rates have risen more than interest rates as competition among airlines intensified the scramble to find every way possible to expand capacity. This is a time when airlines need to be fixing their battered post-pandemic balance sheets, but progress is effectively capped by supply chain issues that manufacturers need to resolve.”
Two specific concerns were also raised in the report. First, fuel efficiency has stagnated, with no improvement between 2023 and 2024, maintaining a rate of 0.23 liters per 100 available tonne kilometers (ATK). This marks a deviation from the long-term annual improvement trend of 1.5–2.0% seen between 1990 and 2019. These challenges in the supply chain have disrupted the expected improvements in fuel efficiency.
Second, leasing rates for narrow-body aircraft have surged to 20–30% higher than 2019 levels due to intense competition among airlines seeking to expand their capacity.
Industry Commitment to Sustainability
The supply chain crisis has also impacted the industry’s environmental ambitions. Airlines remain committed to achieving net-zero carbon emissions by 2050, but these disruptions have slowed progress. Walsh emphasized the need for manufacturers to address their issues, saying:
“The entire aviation sector is united in its commitment to achieving net zero carbon emissions by 2050. But when it comes to the practicality of actually getting there, airlines are left bearing the biggest burden. The supply chain challenges are a case in point. Manufacturers are letting down their airline customers and that is having a direct impact of slowing down airlines’ efforts to limit their carbon emissions. If the aircraft and engine manufacturers could sort out their issues and keep their promises, we’d have a more fuel-efficient fleet in the air.”
Despite the challenges, airlines are effectively adapting to the changing landscape, successfully balancing short-term pressures with their long-term objectives. Manufacturers are diligently addressing supply chain challenges to improve delivery schedules, operational efficiency, and sustainability. It’s crucial to recognize why your airline might be experiencing a shortage of planes or why many aircraft are undergoing extended maintenance periods due to supply chain issues.
