**Why Airlines Are Facing Extra Costs Worth $11 Billion This Year**
*By Dwaipayan Roy | October 13, 2025, 07:53 PM*
Global airlines are grappling with over $11 billion in additional expenses this year, largely due to ongoing supply chain disruptions. This alarming figure comes from a recent report released by the International Air Transport Association (IATA).
### Cost Breakdown: Major Contributors to Extra Expenses
According to the IATA report, the largest portion of these extra costs—approximately $4.2 billion—is attributable to increased fuel expenses. Airlines are forced to keep older aircraft in operation longer than planned, which drives up fuel consumption.
Maintenance costs also pose a significant financial burden, expected to add around $3.1 billion more this year. Additionally, leasing engines to cover delays caused by maintenance queues will cost airlines another $2.6 billion.
To mitigate delays from scarce parts, airlines are holding more spare parts as a buffer, a strategy projected to cost an extra $1.4 billion in 2025 alone.
### Ongoing Challenges: Supply Chain Issues to Persist Until the End of the Decade
IATA Director General Willie Walsh expressed surprise at the scale of these additional expenses and suggested that the industry may need to reexamine potential anti-competitive practices among suppliers.
He stated, “Even if you halve the number, it’s still a massive drag on the industry.” Walsh emphasized that competition for the limited supply of parts and equipment will continue, saying, “There’s now going to be continuing competition for the limited supply that is there.”
He also questioned the influence suppliers have over parts pricing, calling for “additional competition in the aftermarket, which clearly has seen significant consolidation.”
As supply chain challenges persist, airlines must navigate these increased costs while advocating for more competitive and transparent markets to ensure sustainable operations moving forward.
https://www.newsbytesapp.com/news/business/airlines-supply-chain-crisis-costs-over-11b-this-year/story