Commercial aviation executives have unleashed a wave of fierce criticism against the world’s leading aerospace manufacturers at a major global gathering. Airline chief executives expressed deep frustration over chronic supply chain failures and poor engine reliability during the International Air Transport Association (IATA) Annual General Meeting in Rio de Janeiro. Carrier bosses warned that delayed jet engine deliveries and rising repair costs will likely force them to ground hundreds of commercial aircraft for years. This persistent gridlock is severely restricting the industry’s growth, putting immense pressure on corporate balance sheets that have not yet fully recovered from the pandemic.
The most direct attack came from IATA Director General Willie Walsh, who delivered a forceful critique of original equipment manufacturers during his state-of-the-industry address. Walsh accused jet engine makers of exploiting carriers and profiting at the expense of struggling airlines, demanding that they refocus on their customers’ operational needs. He urged these manufacturers to stop gouging airlines and return to producing reliable, long-lasting products. Walsh emphasized that allowing these manufacturing and supply-chain failures to persist into the next decade is a completely unacceptable outcome for global customers, who ultimately pay the price through higher fares and reduced flight options.
The outgoing IATA chief did not mince his words when discussing the financial mismatch between the manufacturers and the airlines. He noted that while engine manufacturers are posting robust quarterly profits and doing extremely well, they are simultaneously inflicting significant financial pain on the global airline industry. Walsh explained that he chose the word “gouging” deliberately to reflect the deep resentment brewing among airline executives. He asserted that if airlines operated with such poor product reliability and failed to deliver on their basic promises, they would go out of business within months. Yet, the manufacturing monopolies continue to generate high margins despite their poor performance.
The physical impact of these supply-chain bottlenecks is visible at airports across the globe, where hundreds of modern passenger jets sit grounded due to a lack of spare parts and replacement engines. According to the latest IATA data, the global aircraft order backlog has exceeded an astronomical 18,000 planes. As a result, the average age of the world’s commercial airline fleet has climbed to a record high of 15.2 years. Airlines are short of over 5,000 fuel-efficient replacement aircraft they had originally counted on for their 2026 fleet renewal plans, forcing them to operate older, less efficient planes for much longer periods.
These persistent delays carry an enormous financial penalty for global carriers. In total, supply chain failures and delayed aircraft deliveries cost airlines at least $11 billion in 2025 alone. To maintain their flight schedules, carriers must pay exceptionally high lease rates to keep older aircraft in service and bear skyrocketing maintenance and repair expenses. These inefficiencies prevent airlines from capturing the fuel-saving benefits of newer technology, eroding their operational efficiency at a time when they are desperately trying to lower their carbon footprints to meet ambitious net-zero emission targets by 2050.
The supply-chain crisis has hit airlines just as they face a devastating secondary economic shock. The outbreak of war in the Middle East has severely choked off jet fuel supplies and forced carriers to fly longer, costlier detour routes to avoid contested airspace. Global analysts expect average jet fuel prices to be 70% higher year-on-year, adding a staggering $100 billion to the industry’s collective fuel bill. This combination of skyrocketing fuel costs and aircraft shortages has forced rating agencies to cut their global airline sector outlook to negative, warning that operating profits could plummet by more than 35% before the market stabilizes.
This toxic mix of supply constraints and fuel price spikes has severely dented the financial outlook for the global air transport industry. IATA economists have slashed their prior optimistic forecasts, projecting that global airline net profits will fall to $23 billion in 2026, down from the $45 billion recorded last year. This represents a near-halving of industry profitability, while IATA expects average net profit margins to narrow to a razor-thin 2.0% in 2025, down from 4.2%. Before this latest crisis, many low-cost regional carriers operated on even smaller margins of around 1.5%, suggesting that several budget airlines may face bankruptcy or forced consolidation before the end of the year.
Other prominent airline executives echoed Walsh’s warnings, indicating that the supply-chain gridlock will not resolve anytime soon. United Airlines CEO Scott Kirby expressed deep skepticism about a quick recovery, telling industry delegates that he expects engine shortages and part delays to persist for at least the next five years. While Kirby acknowledged that aerospace giants like General Electric and Pratt & Whitney are actively working with carriers to resolve technical issues, he singled out British engine manufacturer Rolls-Royce for ongoing supply chain difficulties that continue to disrupt international widebody operations.
As the annual summit concluded, the message from the global airline community was clear: the current state of aerospace manufacturing is unsustainable. For airlines to survive this dual crisis of rising fuel prices and grounded fleets, they must secure immediate, concrete commitments from their manufacturing partners. Until jet engine makers can resolve their internal bottlenecks, deliver on their multi-billion-dollar backlogs, and restore basic product reliability, the aviation industry will remain trapped in a costly holding pattern, forcing passengers to bear the brunt of higher ticket prices and restricted travel options.
