Aviation's Turbulent Recovery: Soaring Demand, Lagging Supply

The global aviation industry struggles to recover post-pandemic amidst supply chain disruptions, soaring demand, geopolitical challenges, and prolonged delivery delays. The situation forces airlines to extend the use of older planes, escalating maintenance and fuel costs. While manufacturers ramp up production, demand remains unprecedented.

The aviation industry continues to face headwinds years after the pandemic, grappling with supply chain disruptions exacerbated by record passenger demand and geopolitical complexities. Airlines find themselves extending the life of older, less fuel-efficient aircraft due to delays from suppliers like Airbus and Boeing, stemming from competing priorities in production and maintenance.

Industry leaders express concerns about supply bottlenecks becoming a persistent challenge. Jeffrey Lam of ST Engineering, the world's largest airframe maintenance provider, called this 'new norm' unacceptable at the Singapore Airshow. The shortages have inflated costs for airlines globally, with some, like Scoot of Singapore Airlines, preemptively securing spare engines to counter potential issues.

Despite a 9.3% rise in global air passenger traffic over pre-pandemic levels, supply chains remain constrained. Manufacturers like CFM International are increasing output, yet demand continues to outpace supply. Geopolitical issues, notably those linked to the conflict in Ukraine, contribute to shortages of critical materials, further complicating recovery efforts.