The global airline industry is bracing for more than $11 billion in extra costs next year, according to a new report by the International Air Transport Association (IATA) and consulting firm Oliver Wyman.

The report cites ongoing supply chain disruptions that have delayed aircraft deliveries and spare parts, forcing airlines to operate older, less fuel-efficient planes. The resulting inefficiencies are driving up expenses across the industry.

Cost Breakdown

Fuel inefficiency: $4.2 billion

Maintenance: $3.1 billion

Engine leasing: $2.6 billion

Spare parts and inventory: $1.4 billion

With a record 17,000 aircraft still awaiting delivery, airlines are grappling with escalating costs tied to maintenance, fuel, and equipment shortages.

IATA warns that unless supply bottlenecks ease, these pressures could slow the industry’s recovery and keep ticket prices elevated. The association is calling for greater supply chain transparency, expanded repair capacity, and more flexible aftermarket rules to stabilize operations.