The International Air Transport Association (IATA) has sounded the alarm over an unprecedented backlog of 17,000 new aircraft orders, signaling the severe impact of supply chain disruptions on the aviation industry.
This staggering figure, which reflects the cumulative number of unfulfilled aircraft orders, underscores the mounting challenges faced by airlines and manufacturers.
According to IATA’s latest industry outlook, clearing this backlog at current production rates would take 14 years, a stark contrast to the six-year average recorded between 2013 and 2019.
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“The backlog for new aircraft has reached 17,000 planes, a record high. At present delivery rates, this would take 14 years to fulfil, double the six-year average backlog for the 2013-2019 period,” IATA stated in its report.
The association attributed the delays to persistent supply chain issues that continue to plague aircraft manufacturers and warned that these disruptions would stretch well into 2025. Rising costs, limited fleet expansion, and stagnating fuel efficiency are compounding the challenges for an industry still grappling with post-pandemic recovery.
Aging Fleet Adds Financial Strain
One of the report’s most striking revelations is the record average age of the global aircraft fleet, now standing at 14.8 years—up significantly from the 13.6-year average recorded between 1990 and 2024. Older fleets translate into higher maintenance expenses, increased fuel consumption, and greater capital requirements for airlines struggling to modernize their operations.
Furthermore, the number of parked aircraft remains concerning. As of December 2024, approximately 14% of the global fleet—roughly 5,000 planes—are still parked. Of these, 700 remain grounded due to engine inspections, exacerbating airlines’ inability to meet growing demand. While the percentage of parked planes has improved, it remains 4 percentage points above pre-pandemic levels, equivalent to an additional 1,600 grounded aircraft.
Leasing costs for narrow-body aircraft have surged by 20–30% above 2019 levels, driven by heightened demand as airlines struggle to expand capacity amid delivery delays. Meanwhile, fuel efficiency—a critical metric for both environmental and financial performance—has stagnated.
IATA reported no improvements in fuel efficiency between 2023 and 2024, a notable departure from the 1.5–2.0% annual gains typically recorded between 1990 and 2019. This stagnation adds to the financial burden on airlines, which already face soaring fuel costs and increased operational expenses.
The report offered a glimmer of hope, with aircraft deliveries expected to rise to 1,802 units in 2025, up from an estimated 1,254 in 2024. However, this figure still falls far short of earlier projections, which anticipated 2,293 deliveries.
Willie Walsh, IATA’s Director General, described the supply chain disruptions as a “triple whammy” for the aviation sector, impacting revenues, costs, and environmental performance.
“Load factors are at record highs, but the inability to expand fleets limits revenue potential. Manufacturers must urgently address these supply chain issues,” Walsh said.
Impact on Sustainability Goals
The delays also jeopardize the industry’s ambitious target of achieving net-zero carbon emissions by 2050. Newer, fuel-efficient aircraft are critical to reducing the sector’s carbon footprint, but delays in their production hinder progress toward this goal.
“Without a swift resolution of these issues, the industry’s recovery, profitability, and sustainability goals could face significant setbacks in 2025,” IATA warned.
The Struggle to Modernize Fleets
The aviation industry has long relied on steady fuel efficiency improvements and fleet modernization to maintain profitability and sustainability. Between 1990 and 2019, annual efficiency gains of 1.5–2.0% were achieved, driven by advancements in engine technology and aerodynamic designs.
However, the pandemic disrupted this trajectory, grounding fleets and straining supply chains. Manufacturers like Airbus and Boeing have faced material shortages, labor challenges, and logistical bottlenecks that continue to delay deliveries.
Adding to the woes, the grounding of 700 planes for engine inspections is seen as an indication of ongoing challenges in component reliability, further straining airlines’ ability to meet operational needs.