Overview

• New IATA–Oliver Wyman analysis quantifies the extra 2025 cost at more than $11 billion for carriers worldwide.
• The report attributes $4.2 billion to extra fuel from operating older aircraft, $3.1 billion to added maintenance, $2.6 billion to engine leases, and $1.4 billion to larger spare-parts inventories.
• IATA cites shortages of labor, materials and parts, slow aircraft output, and repair backlogs, with increasing competition for capacity from the defense sector.
• Director General Willie Walsh said the association may reassess supplier conduct in the aftermarket, though no new legal challenge has been launched.
• IATA recommends boosting MRO capacity and supply-chain visibility and promoting greater aftermarket competition, as demand continues to outpace capacity after 2024’s 10.4% traffic growth versus 8.7% capacity expansion.