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Supply chain disruptions cost the global airline industry at least “$11bn” in 2025, a figure that is set to worsen as fuel prices rise and aircraft delivery backlogs persist, the International Air Transport Association (IATA) has said. “Today’s higher fuel prices will only make that worse,” IATA director general Willie Walsh told the inaugural IATA World Maintenance and Engineering Symposium held recently in Madrid, where the association outlined four priorities it says are needed to address persistent weaknesses across the aerospace supply chain. Walsh noted that the aircraft order backlog has surpassed “18,000” units and that average fleet age has reached a record “15.2” years. Airlines are also short of more than “5,000” fuel-efficient replacement aircraft they had anticipated, resulting in missed efficiency gains, higher lease rates, and rising maintenance costs. “Alongside aircraft delivery delays, engine durability issues, shortages of materials and spare parts, and constrained maintenance capacity are disrupting airline operations. Addressing these challenges will require practical action and cooperation across the aviation value chain,” IATA’s director of Flight and Technical Operations Stuart Fox stated. Fox presented four measures the association believes would materially improve conditions for airlines: enhance supply chain visibility; open up the aftermarket; unlock the value of data, digitalisation, and artificial intelligence (AI); and build human capacity. On visibility, IATA called on manufacturers to provide earlier and more reliable information on delivery delays, repair turnaround times, parts availability, and known supply bottlenecks, giving airlines a better basis for planning their network operations. The association also pressed for greater competition in the aftermarket, urging more manufacturers to adopt the principles established under the IATA-CFM agreement. It noted that longstanding commercial restrictions on repair instructions, tooling, approved repair networks, and spare parts distribution have limited airlines’ ability to use certified alternatives, driving up costs and wait times. On data and technology, IATA called for tighter integration between airline maintenance systems and external market intelligence tools. It said AI can support inventory management, predict parts shortages, and reduce manual processes, and pointed to its cooperation with the International Airlines Technical Pool and the no-cost rollout of its MRO SmartHub platform as steps already taken in that direction. The fourth priority concerns the workforce, Fox pointed out. Boeing has estimated that “710,000” new maintenance technicians will be needed over the next 20 years. IATA urged a review of recruitment, training, and licensing timelines, and called for greater cross-border recognition of technical qualifications to address the expected shortfall. Fox acknowledged the pressure the industry is facing but stopped short of pessimism, saying, “The supply chain is under real pressure, but this is not a reason for pessimism. It is a reason for action. “These four priorities alone are not complete solutions. But they would be an important step for OEMs, suppliers, MROs, lessors, regulators, and airlines working together to achieve the resilient aerospace supply chains that global connectivity needs,” he continued. Separately, IATA raised concerns about the feasibility of aircraft equipment mandates, calling on regulators to ensure that compliance deadlines account for certification timelines, equipment availability, and installation capacity. It said it has taken these concerns to the International Civil Aviation Organisation (ICAO) in connection with requirements linked to the Global Aeronautical Distress and Safety System, Runway Overrun Awareness and Alerting Systems, and Automatic Dependent Surveillance-Broadcast systems. “This is not about delaying safety. It is about making safety deliverable. Global safety improvements require globally coordinated implementation timelines that reflect certification, equipment availability, and installation capacity,” Fox stated. 

Qatar Airways has largely weathered the disruptions caused by the war in Iran, with passenger loads exceeding “80%” and recovery tracking closer to a V-shape than the U-shape it had initially braced for, according to the airline’s top executive.Hamad Ali al-Khater, in an exclusive interview with CNN’s Richard Quest at the International Air Transport Association (IATA) Annual General Meeting in Rio de Janeiro, said the crisis that struck on February 28, when Iranian strikes prompted Qatar to shut its airspace, was “the most significant” the airline had faced in its modern history.Four Qatar Airways flights were cancelled until early March, and capacity has been building back since, though it has not yet returned to pre-war levels, Quest noted. But al-Khater pointed out that demand had defied expectations: “We’ve seen demand bounce back at a pretty surprising level.”He said, “What we expected was a U-shaped recovery. It’s coming closer to a V-shape right now. Loads, just five days ago, crossed north of 80%. Australia to Europe, the kangaroo route is bouncing back. India, US flows are bouncing back, China, Africa. We’re seeing some pretty robust and resilient demand outside.”On fuel, al-Khater said the airline had mapped out its outstations and was satisfied there was enough headroom to manage supply risks, even as the Strait of Hormuz remains closed.“Let me put things into perspective. The skies are open for Qatar Airways, but the strait remains closed for now. So...we’re provisioning, we fly to about...166 destinations. We’ve mapped out all our outstations in airports where we believe there’s high risk.“We believe there is sufficient headway from proper critical fuel supply shortages. Having said that, we’re looking after the health of the business, so we provision accordingly. And resilience and emergency and planning was just a core paramount factor in how we operate in the months to come,” he explained.Al-Khater acknowledged fuel prices remain a risk and that the airline would need to adjust ticket pricing accordingly, but said load factors justified confidence. “Yes, fuel price is a risk. Yes, we have to pivot and steer accordingly from a price perspective to see what’s appropriate for our passengers, but the loads speak for themselves,” al-Khater emphasised.According to al-Khater, his priority was preserving jobs through the current uncertainty. “The health of the business remains paramount and preservation of jobs and that’s what I’m focusing on. If I bring that back to what’s important to us, it’s our people. What that means is culture, empowerment, and upskilling, but it’s also a focus on growth, which is still set to continue,” he said.Al-Khater said Qatar Airways has around “210” widebody orders from its Boeing deal and expects A321 long-range aircraft to arrive in October, which he said would give the airline narrowbody aircraft with widebody-range potential. Starlink connectivity is already across most of the fleet, and Q Suite Next Gen is due soon, he also said.“These factors are going to make sure that we’re in a much healthier position once we’re out of this crisis,” he emphasised.Al-Khater added: “I’m very privileged to be leading this organisation. It comes with a profound sense of responsibility. And there are plenty of young leaders worldwide who are capable of demonstrating their resilience, and I’m here to do that.” 

Efforts to accelerate the deployment of sustainable aviation fuel (SAF) are gaining momentum, with the International Air Transport Association (IATA) and the International Civil Aviation Organisation (ICAO) joining forces to ensure transparent reporting that can build confidence across the industry and keep aviation on track for its 2050 net zero target.“By working with ICAO to strengthen how progress on SAF use is measured and reported, we can accelerate deployment, build trust across stakeholders, and put aviation on track for net zero by 2050,” stated IATA Director General Willie Walsh.Walsh’s statement came after IATA and ICAO announced enhanced cooperation at the ‘ICAO Aviation Climate Week’ to advance transparency and integrity in tracking progress and accelerating the development and deployment of SAF.Both organisations agreed to explore how SAF registries and the data they collect can support the implementation of ICAO’s Long Term Aspirational Goal (LTAG) Monitoring and Reporting methodology, as well as the consideration of fuel accounting systems for international aviation.ICAO secretary general Juan Carlos Salazar said the agreement would strengthen ICAO’s leadership in supporting states and industry to scale up SAF and other cleaner energies.“Achieving ICAO’s vision of net zero carbon emissions from international aviation by 2050 will require unprecedented levels of transparency and cooperation across the entire sector,” Salazar emphasised.The partnership is seen to enhance efforts of stakeholders in the Middle East, which is positioning itself as a strategic hub for SAF production, with industry forums in Abu Dhabi underscoring the region’s growing role in eFuel innovation.Formula 1 announced in 2024 that it is expanding its SAF investments through a new programme developed with Qatar Airways. Formula 1 added that Qatar Airways Group completed in the same year an additional purchase of SAF for use in its fleet, which has resulted in reduction of 19,000 tCO2e.The Qatar Civil Aviation Authority (QCAA) has also launched research projects with Hamad Bin Khalifa University and Qatar Airways to explore SAF production from local resources, aligning with Qatar’s 2024–2030 climate strategy.Beyond Qatar, regional energy giants are investing heavily in SAF. The Abu Dhabi National Oil Company (ADNOC) became the first Middle East company to receive ISCC certification for SAF production at its Ruwais Refinery, while Saudi Aramco has partnered with TotalEnergies and SIRC to build a SAF plant in Dammam.Aramco is also developing eFuel demonstration projects in NEOM, producing synthetic fuels from green hydrogen and captured CO2, underscoring the Gulf’s ambition to lead in next generation aviation energy.As IATA and ICAO strengthen global monitoring frameworks, Gulf carriers and energy firms are well placed to benefit from transparent SAF accounting systems, ensuring that regional investments are recognised consistently under international climate frameworks.“By improving our global monitoring capabilities and visibility into SAF production, distribution, and use, we can support the integrity of global fuel accounting systems and ensure that climate investments are recognised consistently and transparently under ICAO frameworks,” Salazar pointed out.According to IATA, close collaboration between industry and states, underpinned by robust systems and high-quality data, will aim to enable transparent and credible tracking of aviation cleaner energies and their contribution towards net zero carbon emissions by 2050, in alignment with the respective IATA and ICAO ambitions and commitments.Walsh said, “Credible tracking is necessary to know the emissions reductions delivered by SAF. The data collected by the CADO SAF Registry, among others, has the potential to meet this need...This will set a great example for individual states to work with industry to make the most of the SAF data that is being accumulated.” 

Travel demand in the US is unlikely to catch up to international growth in the near future, the head of the leading global aviation association said at the Singapore Airshow.“Expected growth in the US market is lower than the global average,” International Air Transport Association Director General Willie Walsh said in a Bloomberg TV interview on Tuesday.Demand will grow by 4.9% around the world while remaining “broadly flat” in the US, and the organisation expects that trend to last beyond 2026, he said.Consolidation, focus on domestic travel even as it stagnates, a shortage in aircraft and problems in the supply chain affecting major US airlines contributed to stagnation in the American market, Walsh said.Global airlines stand to earn a record $41bn this year, with Europe contributing the most as US carriers grapple with fallout from tariffs, tighter immigration enforcement and heightened geopolitical tensions.Walsh also said he has faith in aviation regulators to operate without intervention, after President Donald Trump threatened to decertify planes made in Canada over certification of Gulfstream jets.“It creates noise in the background, but I have full confidence in both the professionals at the FAA and in safety regulators in other parts of the world, and I don’t believe politics will interfere in that,” he said.Trump last week said he’d apply a 50% tariff to planes made in Canada and strip them of globally recognised safety permits. He complained Ottawa hasn’t yet approved certain jets made by Gulfstream, a unit of General Dynamics Corp, that have already been certified by the Federal Aviation Administration. 

Safety, sustainability and efficiency will be top on IATA’s priority list as the International Air Transport Association gets ready for the 42nd Assembly of the International Civil Aviation Organisation (ICAO) in Montreal from September 23 to October 3.ICAO has already accepted some 14 working papers authored by IATA covering a wide range of topics for the Assembly’s consideration.IATA’s Director General Willie Walsh noted, “IATA will be participating in the ICAO Assembly with safety, sustainability and efficiency at the top of our priority list. It is critical that we secure stronger support for SAF production and CORSIA as key enablers of aviation’s commitment to achieve net zero emissions by 2050.“Equally, we need agreement to follow the principles and provisions of the Chicago Convention to avoid patchworks of debilitating tax measures and passenger rights regulations. And we must shore-up safety with timely accident reports, mitigations for GNSS interference and preservation of critical radio-frequency spectrum.”Global standards, many of which are developed by governments through ICAO, are crucial for safe, efficient and increasingly sustainable aviation operations worldwide.These standards are developed with the expertise and input of airline operators’ worldwide working with ICAO member states. The ICAO Assembly is a once-every-three-year opportunity for states to align on ICAO’s work programme as it addresses aviation’s most pressing issues.“The criticality of global standards to global aviation cannot be underestimated. I am optimistic for the outcomes of this Assembly. Everybody wants flying to be safe, efficient and more sustainable. So, we have a common agenda with governments. Indeed, many of our submissions to the Assembly are simply asking governments to more effectively implement what they have already agreed. The coming weeks in Montreal are essential to set the agenda, but even more important is the following three years of work to achieve what is agreed,” Walsh added.

Beyond the TarmacThe Asia-Pacific region’s aviation industry is back on the growth trajectory.The International Air Transport Association (IATA), the global body of airlines, predicts 9% growth for Asia-Pacific in 2025.Which means, a region that has struggled to shrug off the strictures of Covid-19 is once again posting the highest growth rate in the world.Aviation in Asia-Pacific supports $890bn in GDP and 42mn jobs, with the potential to increase to $2.3tn in GDP and 62mn jobs by 2043.Analysts say rising middle-class populations, particularly in China, India, Indonesia, Vietnam, and the Philippines, are fuelling demand for both domestic and international travel.Asia is the epicentre of global e-commerce (China and Southeast Asia leading), driving robust demand for air cargo and integrated logistics.Asia-Pacific is home to some of the world’s most dynamic tourism markets. Countries like Thailand, Japan, Vietnam, and Australia continue to record strong inbound flows. Analysts believe regional tourism agreements and visa liberalisation policies are expected to boost connectivity.The UNWTO and IATA forecast Asia-Pacific to contribute more than half of global passenger growth over the next two decades.“Most countries have crossed the line of pre-COVID figures and are experiencing increasing air travel demand,” says Sheldon Hee, IATA’s Regional Vice President for Asia-Pacific.“Four of the most populous countries in the world are in our region and all are young, emerging economies with a fast-growing middle class. We are even seeing some significant visa relaxation policies.“But the resumption of growth comes with challenges,” he adds. “The profit margin for 2025 is expected to be just 1.9%, or $2.60 per passenger. Aviation in Asia-Pacific must become more economically robust to meet demand with a high level of customer service delivered cost-efficiently.”Airport and airspace capacity are naturally the main considerations. On the positive side, there are at least 90 new airports under construction or in the planning stage, including significant gateways in Australia, India, and Vietnam. Each is a sign that the relevant government has aviation development on its agenda.“But there is more room for collaboration,” says Hee. “Airlines don’t need over-investment in facilities that would require deeper cost recovery. Development must be calibrated correctly, and airlines must be part of the conversation so that investments are correctly staged.”To assist passenger throughput — especially amid narrow margins — digitalisation in both passenger and cargo operations is essential. Every efficiency will count.Digitalisation and contactless travel centred on IATA’s ‘One ID’ will also be key enablers in enhancing the customer experience.India’s ‘Digi Yatra’, a facial recognition system for verified domestic customers, is leading the way but interoperability will be critical.Meanwhile, airspace is also being upgraded across the region but there is a notable bottleneck in the Bay of Bengal where aircraft get bunched for a variety of factors.The different levels of maturity in this diverse region mean there are also plenty of areas still reliant on older equipment, which leads to inefficiencies on a broader scale.Air cargo is an important part of needed capacity as Asia-Pacific is a major origin point for the booming e-commerce trade. Cargo revenues are often critical to the profitability of a flight, and this is certainly the case in Asia-Pacific.Trade barriers and tariffs could change traditional flows but demographic conditions and the desire to trade more within the region mean there are multiple opportunities for air cargo ahead.Although the outlook remains positive for this sector, there are inefficiencies to address. Paper is still commonplace in the region and optimisation based on the ONE Record has plenty of room for growth.“The industry is also doing a lot of work to make the carriage of dangerous goods (DG), and particularly lithium batteries, safer,” says Hee. “Good progress is being made but this work is especially pertinent to Asia-Pacific given the manufacturing in the region. We must educate the upstream shippers about the need for correct DG packaging and documentation.”IATA said it continues to work with governments and aviation authorities to promote the benefits of aviation and the business case for unlocking capacity.Undoubtedly, Asia-Pacific will remain the fastest-growing aviation region globally, led by China and India. Regional connectivity, tourism, and cargo are estimated to expand strongly.That said, the region’s air traffic management systems need modernisation to handle rising volumes efficiently and safely. Despite expansion, congestion at major airports in the region remains a major concern.