The Association of Asia Pacific Airlines (AAPA) is calling for governments to tackle supply chain disruption that is delaying deliveries of new aircraft, constraining capacity and threatening Asia Pacific trade growth.
According to the AAPA, average load factors are at a record high of 83% in the region, reflecting capacity constraints.
“In 2025, over one-fifth of aircraft deliveries are expected to be delayed,” said Subhas Menon, director general of AAPA. “Pandemic-induced supply chain disruptions remain unresolved, and there’s no clear path to any meaningful alleviation of these constraints."
The AAPA pointed to the fact that aircraft and engine production rely on materials from a variety of markets. The imposition of new tariffs and retaliatory measures threatens to drive up costs and slow production further.
"The US government’s tariffs onslaught is set to further complicate an already fragile ecosystem," added Menon.
“Aviation supply chains were built on the efficiencies of open markets and international cooperation,” he added. “Now, that framework is being wholly undermined. Free trade has always lifted aviation and the broader economy. Trade barriers do the opposite, dragging everyone down."
Delayed delivery of aircraft also affects the 2050 decarbonisation targets in aviation, stressed the AAPA.
Delayed deliveries mean airlines must keep older, less efficient and polluting aircraft in service. Compounding this is the limited availability of Sustainable Aviation Fuel (SAF).
Ultimately, it is important for governments and suppliers to make an effort to safeguard the operations of airlines because they make a valuable contribution to economies, stressed the AAPA.
The rising burden of material shortages, coupled with regulatory hurdles and surging equipment costs, is threatening the long-term growth and sustainability of the industry, said the organisation.
Menon added: “Aviation is a catalyst for sustainable economies and global connectivity. Its contribution to economic and social development is an outsized one, particularly in the Asia Pacific region.
"Airlines don’t manufacture aircraft, engines, fuel, or manage airports and airspace. Air services are clearly in demand, but meeting the demand is more difficult now due to factors outside the control of airlines. Governments and suppliers must step up to tackle this disconnect.”
