Dec 10, 2024 09:49 PM IST
IATA said the estimate for 2024 deliveries is 1,254 aircraft, a 30% shortfall on what was predicted going into the year
NEW DELHI: Global aviation body International Air Transport Association (IATA) on Tuesday said that it expects supply chain issues to continue to impact airline performance into 2025, raising costs and limiting growth.
IATA, which represents about 340 airlines that comprise over 80% of global air traffic, said that the average age of the global fleet has risen to a record 14.8 years, up from 13.6 years average for the period 1990-2024.
“The estimate for 2024 deliveries is 1,254 aircraft, a 30% shortfall on what was predicted going into the year. In 2025, deliveries are forecast to rise to 1,802, well below earlier expectations for 2,293 deliveries with further downward revisions in 2025 widely seen as quite possible,” an IATA statement said.
It added that the backlog for new aircraft has reached 17,000 planes.
“At present delivery rates, this would take 14 years to fulfil, double the six-year average backlog for the 2013-2019 period. However, the waiting time is expected to shorten as delivery rates increase,” it added.
The number of parked aircraft or aircraft on ground (AOG) is 14% of the total fleet, of which around 2% are parked for engine inspections.
“We expect this situation to persist into 2025. 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,” Willie Walsh, IATA’s director general said.
“Meanwhile, the ageing 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,” he added.
Walsh said the aviation sector was united in its commitment to achieve net zero carbon emissions by 2050 but when it comes to the practicality of actually getting there, airlines have been left bearing the biggest burden.
“The supply chain issues 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,” he said.
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