**Why Airlines Are Facing Extra Costs Worth $11 Billion This Year**
*By Dwaipayan Roy | October 13, 2025, 7:53 PM*
Global airlines are grappling with over $11 billion in additional costs this year, driven largely by ongoing supply chain disruptions, according to a new report by the International Air Transport Association (IATA).
### Major Contributors to Extra Costs
The IATA report identifies several key factors behind the surge in expenses. The largest portion—$4.2 billion—is due to increased fuel costs. Airlines are compelled to operate older aircraft longer than planned, which are generally less fuel-efficient, thereby driving up fuel consumption and related expenses.
Maintenance has become significantly more expensive as well, with an estimated extra $3.1 billion in costs. Additionally, airlines are paying about $2.6 billion to lease engines while their own equipment remains stuck in maintenance queues.
To mitigate delays, carriers are also holding more spare parts as a buffer, which is projected to add another $1.4 billion in costs this year alone.
### Ongoing Challenges and Industry Outlook
IATA Director General Willie Walsh expressed surprise at the magnitude of these additional costs and raised concerns about potential anti-competitive practices among suppliers. Walsh stated, “Even if you halve the number, it’s still a massive drag on the industry.”
He warned that competition for limited supply will persist, saying, “There’s now going to be continuing competition for the limited supply that is there.” Walsh also emphasized the need for greater competition in the aftermarket sector, which has undergone significant consolidation, giving suppliers considerable control over parts pricing.
As supply chain challenges are expected to endure until the end of the decade, airlines and regulators may need to explore new strategies to ease the financial strain on the industry.
https://www.newsbytesapp.com/news/business/airlines-supply-chain-crisis-costs-over-11b-this-year/story