Aviation sector faces supply chain crunch, IATA warns
MANILA, Philippines — The International Air Transport Association (IATA) has raised concerns about the protracted supply chain issues affecting the aviation sector, despite an anticipated growth in operations this year.
According to a recent report by IATA, the lack of aircraft parts and materials for maintenance has continued to pose challenges for airlines worldwide. This has led to unforeseen maintenance issues, delays in aircraft parts deliveries, and limited capacity expansion and fleet renewal.
As a result, some jets have been parked for longer periods, causing flight delays and cancellations on occasion.
In response to this global concern, Philippine Airlines, Cebu Pacific, and AirAsia Philippines have been acquiring more jets through purchases, leasing, or reactivating aircraft. The goal is to deploy fleets efficiently to meet the rising demand and improve profitability.
IATA Director General Willie Walsh emphasized the importance of resolving supply chain issues to support the sector’s growth. The association noted that travel demand, especially in the Asia-Pacific region, would be a significant driver of revenue passenger kilometers (RPK) this year.
In particular, the Asia-Pacific region is expected to account for half of the world’s RPK growth in 2024, driven by recovering domestic markets in countries like China, Japan, and Australia. RPK in the region is projected to increase by 17.1 percent this year.
Globally, IATA forecasts a growth of 11% in the aviation sector’s net profits, reaching $30.5 billion in 2024. This positive outlook comes as airlines continue to navigate through uncertainties and recover from losses incurred during the pandemic.
