Delays in aircraft deliveries will likely persist through 2025 and could continue until the end of the decade, according to a report from the International Air Transport Association.
The airline trade group said manufacturer backlogs now exceed 17,000 aircraft, up from 10,000-11,000 before the COVID-19 pandemic, with an implied wait time of 14 years. IATA linked the delays to supply chain issues, including problems with engines and a shortage of spare parts. The slowdown could be made worse by tariffs imposed by the U.S., the report said.
A number of airlines have delayed the launch of new routes because they do not have the aircraft necessary to support them. The holdup has also increased leasing costs and hurt efficiency, since airlines are sometimes stuck using airplanes that are poorly suited for a given service.
This year, 1,692 aircraft are expected to be delivered to airlines. This is the highest number since 2018 but is still down 26% compared to year-ago estimates, IATA noted.
According to the report, over 1,100 aircraft less than 10 years old are currently in storage, constituting 3.8% of the worldwide fleet. That figure stood at 1.3% between 2015 and 2018.
Nearly 70% of those grounded aircraft have Pratt & Whitney PW1000G engines, which have been the subject of a mass recall and inspection effort since 2023. Some of the engines have parts made with contaminated powdered metal, which causes cracking. Pratt is now in the process of checking the powerplants and performing repairs where needed.
RTX Corp., Pratt’s parent company, has estimated the recall will cost about $7 billion.
Despite those challenges, IATA predicted airlines will see a rise in profitability due to falling fuel prices and increased passenger demand. Net profits are projected to grow from $32.4 billion in 2024 to $36 billion in 2025.
