The International Air Transport Association (IATA), has highlighted how the backlog of aircraft orders currently hampered by severe supply chain challenges is affecting recovery in the global air transport ecosystem.
The trade association of global carriers’ said unless urgent steps must be taken, to achieve coordinated recovery efforts and efficiency across the global aviation ecosystem.
Some Nigerian carriers are affected by the supply chain challenges putting a temporary wedge on their ambitious plan to increase their fleet size through aircraft orders.
Air Peace, Ibom Air, United Nigeria Airlines, Overland Airways, Green Africa Airlines, Cally Air, Enugu Airlines, ValueJet Airlines and other carriers have placed orders for airplanes from major original equipment manufacturers (OEMs).
Aircraft delivery delays at Boeing are holding back Ethiopian Airlines’ growth plans, even as Africa’s largest carrier prepares for a major airport expansion and continued passenger growth, its Group CEO Mesfin Tasew has disclosed.
The airline has more than 100 aircraft on order from Boeing, but slower-than-expected deliveries have created a fleet shortage that could persist for up to two years, he said. “We still have a shortage compared to our longer-term plan,” he said. “This will continue, maybe for the coming two years.”
Ethiopian Airlines expects widebody aircraft from both Boeing and Airbus to begin arriving “in large numbers” after that period, allowing it to realign with its growth strategy. The carrier has ordered at least eight B777X (B777-9s), now slated to enter service in 2027 instead of next year, with deliveries expected until 2030.
While narrowbody deliveries remain on schedule, the delays could force Ethiopian Airlines, like other global carriers dependent on Boeing, to adjust route expansion plans or extend the lifespan of older jets. Despite the setbacks, the airline forecasts passenger growth between 12 percent and 15 percent this year.
“We’re opening new routes. We’re increasing frequencies. As a result of this, we expect to grow in terms of passenger numbers at a double-digit rate. This will continue,” he assured. “Now we have a shortage of aircraft; otherwise, we would have grown even faster than 15 percent .”
In terms of network expansion, the airline will be targeting all continents, Mesfin said. In Africa, it is expanding its reach from primary capitals to secondary cities. At the same time, it will continue to expand into Asia and China, while adding more destinations in Europe and North America.
Mesfin had already raised concerns about aircraft shortages in June, when he stated that continued delivery delays into next year could force a revision of interim growth projections. “It will probably not affect our Vision 2035, but in the interim, growth may be slower before accelerating faster,” he said.
In June, in addition to the B777-9 delay, outstanding orders for eleven A350-900s and eleven B787-9s were delayed to 2028, a year later than initially expected.
Ethiopia will begin construction in January on a long-planned $10 billion airport at Abusera, about 40 kilometres south of the capital Addis Ababa. The new hub is designed to handle 60 million passengers initially and 110 million by 2029, easing congestion at Addis Ababa International/Bole International Airport, which is nearing its 25 million-passenger capacity.
Ethiopian Airlines plans to fund 30 percent of the project and has received strong interest from potential lenders, including the African Development Bank, which may contribute $500 million, and the US International Development Finance Corp., Mesfin said.
As the backlog of aircraft orders reaches historic highs and supply chain disruptions continue unabated, the aviation sector, IATA said, confronts a challenging road ahead. .
A recent report from the International Air Transport Association (IATA) reveals that aircraft deliveries in 2024 have plummeted to just 1,254 units, representing a nearly 30 percent decline compared to pre-pandemic levels.
At the same time, the backlog of commercial aircraft orders has surged to an unprecedented 17,000, significantly exceeding the annual average of 13,000 recorded between 2010 and 2019.
Ongoing supply chain bottlenecks are causing substantial delays in the production of new aircraft and essential components.
This development, IATA said, has compelled airlines to extend the operational life of older, less fuel-efficient planes, while hundreds of aircraft remain grounded due to persistent engine problems.
The resulting operational challenges, IATA said, has left carriers struggling to meet the rising demand for air travel.
These disruptions are exacting a heavy financial toll on the industry.
IATA projects that the cumulative cost to airlines will exceed $11 billion in 2025, an increase from similar losses incurred this year.
Delayed fuel savings alone are expected to amount to $4.2 billion, while additional maintenance expenses are forecasted at approximately $3.1 billion. The financial strain, said, is further intensified by operational setbacks, including flight cancellations, increased compensation payments to passengers, and the necessity for forced component replacements that ultimately degrade aircraft performance.
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The industry, IATA stated, is also facing a critical shortage of skilled technicians. A wave of retirements among experienced personnel, coupled with the lengthy training required for new entrants.
Such an arrangement, the body said, has created a significant workforce deficit.
Rising labour costs and constrained manpower are driving up maintenance expenses and prolonging turnaround times.
Speaking in an interview, IATA Chief Executive Officer, Willie Walsh said : “At the core of the crisis lies a fundamental transformation in the aerospace business model. Original Equipment Manufacturers (OEMs) are increasingly reliant on aftermarket revenue streams—such as spare parts, repairs, and maintenance—rather than on initial aircraft sales.”
He went on : “ Although newer aircraft models offer enhanced fuel efficiency, they also demand more complex maintenance procedures, often binding airlines to OEM-controlled repair networks.
“This dependency inflates costs and prolongs lead times for critical parts.
Leasing companies, which now control over half of the global aircraft fleet, further constrain airline flexibility by requiring OEM parts for lease returns.
“This practice limits carriers’ ability to source alternative approved components or expedite repairs, exacerbating the supply chain bottlenecks.
Compounding these structural issues are fragile supply networks and acute labour shortages.
“Geopolitical instability has disrupted access to vital materials such as titanium, while ongoing trade tensions have impeded cross-border logistics.
Key metals, including aluminium and super alloys, remain in short supply, with competition intensifying between the defence and business aviation sectors for these limited resources.”
