Global airlines incurred more than US $11 billion in additional costs over 2025 as ongoing aerospace supply chain disruptions continue to weigh on the industry, according to a new report from the International Air Transport Association (IATA).

The analysis, which is the first to put a firm financial figure on the impact of prolonged supply chain constraints, points to persistent labour shortages, material availability issues and delays in aircraft parts and engine repairs. These challenges are forcing airlines to operate older and less fuel-efficient aircraft for longer, while also driving higher maintenance, leasing and inventory costs.

IATA identified several factors contributing to the increased financial burden on carriers. These include higher fuel consumption linked to ageing fleets, rising maintenance expenses as aircraft remain in service beyond planned replacement timelines, and escalating engine leasing costs as repair backlogs continue to grow. Airlines are also carrying larger inventories of spare parts in an effort to protect operations from further disruption, adding to overall costs.

IATA Director General Willie Walsh described the situation as “a massive drag on the industry,” warning that supply chain constraints are likely to remain a structural challenge for airlines well into the latter part of the decade.

The findings come at a time of strong and sustained demand for air travel, with passenger numbers continuing to rise. However, aircraft manufacturers and the wider aerospace supply chain are struggling to match that demand, placing increasing pressure on airline operating costs and profit margins across the sector.

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