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Airline Supply Chain Failures Cost Industry $11 Billion, IATA Says

The global aerospace supply chain has become an increasingly significant challenge for airlines, affecting fleet expansion, maintenance operations and operating costs.

According to the International Air Transport Association (IATA), persistent delays in aircraft deliveries, shortages of spare parts and limited maintenance capacity continue to disrupt airline operations, prompting the organisation to outline four priorities aimed at strengthening the aviation supply chain.

Delay And Shortage Pressure Is Spreading Across Aviation

The priorities were presented at the inaugural IATA World Maintenance and Engineering Symposium in Madrid, where the association called for stronger supply chain visibility, a more open aftermarket, greater use of data and artificial intelligence, and renewed investment in maintenance technician training.

The scale of the challenge was also highlighted during IATA’s recent Annual General Meeting. IATA Director General Willie Walsh said the aircraft order backlog had climbed to more than 18,000, while the average fleet age had reached a record 15.2 years.

Airlines were also “short over 5,000 more fuel-efficient replacement aircraft that airlines had counted on,” he said, a gap that has translated into “missed efficiency gains, not to mention higher lease rates and increased maintenance costs.”

“In total, supply chain failures cost airlines at least $11 billion in 2025. Today’s higher fuel prices will only make that worse,” Walsh said in IATA’s Report on the Air Transport Industry.

Pressure now extends well beyond aircraft deliveries, according to IATA. Engines, materials, spare parts and maintenance capacity are all under strain, creating bottlenecks across the aviation value chain.

“Alongside aircraft delivery delays, engine durability issues, shortages of materials and spare parts, and constrained maintenance capacity are disrupting airline operations,” said Stuart Fox, IATA’s Director of Flight and Technical Operations. “Addressing these challenges will require practical action and cooperation across the aviation value chain.”

Four Priorities For A Strained Supply Chain

IATA says the industry’s response should focus on four practical areas.

1. Better Supply Chain Visibility

The priority is improved visibility across the supply chain. IATA argues that airlines need earlier and more reliable information from manufacturers on delivery delays, repair turnaround times, parts availability and known bottlenecks so they can plan their networks more effectively.

2. A More Open Aftermarket

The association is also calling for a more open aftermarket, urging more manufacturers to adopt the key principles in the IATA-CFM agreement. The framework supports greater competition by strengthening access to third-party maintenance, repair and overhaul (MRO) services, alternative parts and approved repairs.

IATA said long-standing commercial restrictions on repair instructions, tooling, approved repair networks and spare parts distribution can limit airlines’ ability to use safe, certified alternatives. In practice, that reduces competition, extends waiting times and raises costs.

3. Smarter Use Of Data And AI

A third priority is unlocking the value of data, digitalisation and artificial intelligence. IATA said closer integration between airline maintenance systems and external market intelligence could improve inventory management, highlight material scarcity, support repair-or-replace decisions and strengthen warranty claims.

Artificial intelligence, the association added, could also help airlines forecast demand, identify shortages and reduce manual work at a time when parts availability has become harder to manage.

IATA pointed to its cooperation with the International Airlines Technical Pool (IATP) to help airlines improve visibility and access to aircraft parts, as well as its decision to make MRO SmartHub available to airlines at no cost through a data participation programme.

4. Expanding Human Capacity

The fourth priority is human capacity. IATA wants the industry to revisit recruitment, training and licensing for maintenance technicians, arguing that timelines must be shorter, access broader and careers more stable.

The need is significant. Boeing estimates that 710,000 new technicians will be required over the next 20 years. IATA said that increasing training capacity, removing unnecessary qualification bottlenecks and improving cross-border recognition of skills would help close the gap.

Safety Deadlines Must Reflect Real-World Constraints

IATA also used the symposium to argue for realistic, globally coordinated timelines for mandates requiring new aircraft equipment or avionics upgrades.

The association said compliance deadlines must account for certification requirements, equipment availability, installation capacity and broader supply chain conditions. It has raised these concerns with the International Civil Aviation Organisation (ICAO), including requirements linked to the Global Aeronautical Distress and Safety System (GADSS), Runway Overrun Awareness and Alerting Systems (ROAAS) and Automatic Dependent Surveillance–Broadcast (ADS-B).

“This is not about delaying safety. It is about making safety deliverable,” Fox said. He added that “global safety improvements require globally coordinated implementation timelines that reflect certification, equipment availability, and installation capacity.”

A Call For Cooperation Across The Aviation Value Chain

Fox said the current pressure on the supply chain should be treated as a call to action rather than a reason for pessimism.

“These four priorities alone are not complete solutions,” he said. “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.”

Relay Shuts Down As Its Founder Returns To Google To Shape The Future Of Chrome

AI workflow automation startup Relay is shutting down, with founder and CEO Jacob Bank returning to Google as vice president of product for Chrome. Some other Relay employees are also joining Google’s Chrome team.

Relay launched in 2021 with ambitions to challenge automation platforms such as Zapier. Its platform helped businesses automate repetitive work, including document creation, copyediting and project management.

According to Relay’s announcement, free users lost access on August 15, while paying customers will be able to use the service until September 14. The shutdown was first announced in July.

Relay Founder Returns To Google

Bank previously spent more than six years at Google. He joined the company in 2015 after Google acquired his scheduling startup Timeful, later working on products including Gmail, Google Calendar and Google Chat.

Now back at Google, Bank will lead Chrome’s product and developer relations teams. He said the role will focus on helping people use AI in Chrome while preserving their creativity and decision-making.

Bank described Chrome as a strong platform for working with AI agents and said he would share more about Google’s plans in the future.

Chrome Becomes A Bigger AI Platform

Bank’s return comes as Google continues expanding AI across its consumer products. Gemini is already integrated into Search and Chrome, where it can act as an in-browser assistant and support more agentic tasks.

The company’s AI push is also reaching a growing user base. Google recently said the Gemini app had surpassed 1 billion users.

For Relay, the shutdown marks the end of an attempt to build an AI-powered alternative to established workflow automation platforms. For Google, bringing Bank and members of his team into Chrome could strengthen its efforts to make AI agents a more central part of the browser experience.

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