Supply chain
The aviation industry is still wrestling with supply chain turbulence, and the impact is being felt from the production line to the runway. Even as demand soars and fleets prepare for expansion, parts shortages and production bottlenecks are grounding growth plans.
8/9/20251 min read
Supply Chain Challenges in Aviation — The 2025 Reality Check
The aviation industry is still wrestling with supply chain turbulence, and the impact is being felt from the production line to the runway. Even as demand soars and fleets prepare for expansion, parts shortages and production bottlenecks are grounding growth plans.
The Current Situation
Backlogs & Delays – IATA reports a 17,000-aircraft order backlog, with fulfillment stretching over 14 years. About 14% of the global fleet remains parked due to delayed deliveries. (IATA)
Engine Shortages – Airbus has ~60 completed jets sitting idle, waiting for engines from Pratt & Whitney and CFM International. Recent strikes have worsened the slowdown. (CT Insider)
Long-Term Pressure – Lessor Avolon predicts supply chain disruptions will shape the market for the next decade. (Reuters)
Signs of Resilience
Better Prepared – Roland Berger’s 2025 survey shows 70% of aerospace firms now feel ready for production ramp-up, up from 50% last year. (Roland Berger)
Innovation on the Horizon – Automation, digital twins, and hybrid aircraft are key focus areas revealed at the 2025 Paris Air Show. (Business Insider)
New Industry Insight
KPMG: Continuing Turbulence in Supply Chains – The Aviation Leaders Report 2025 by KPMG underscores that the perfect storm of labour shortages, raw material scarcity, inflation, geopolitical tensions, and regulatory restrictions persists. This cocktail has caused sustained delays, deeply affecting aircraft and engine delivery timelines and amplifying production constraints.