MANILA, Philippines — While the aviation sector is poised for further growth due to busier operations this year, the International Air Transport Association (IATA) warned against the protracted supply chain crunch that can affect aircraft availability.
IATA, in a recent report, said the lack of aircraft parts and other materials needed to service maintenance of jets remained a pain point for the sector across the world.
“Airlines have been directly impacted by unforeseen maintenance issues on some aircraft/engine types as well as delays in the delivery of aircraft parts and of aircraft, limiting capacity expansion and fleet renewal,” the trade association said.
READ: Behind aviation recovery, suppliers struggle to keep up
This global concern has resulted in jets being parked for a longer period, prompting flight delays and cancellations at times.
Purchase, leasing of aircraft
Philippine carriers have been dealing with this supply chain crunch since the resurgence of air traffic that followed the lifting of pandemic travel restrictions.
READ: Asia-Pacific air travel sustains momentum
In response, Philippine Airlines, Cebu Pacific, and AirAsia Philippines have been acquiring more jets through the purchase, leasing, or reactivation of aircraft.
“To improve profitability, resolving supply chain issues is of critical importance so we can deploy fleets efficiently to meet demand,” IATA Director General Willie Walsh said.
IATA noted that travel demand, measured in revenue passenger kilometers (RPK), would be coming mostly from the Asia-Pacific region this year.
Aviation sector profit seen to grow by 11%
“Asia-Pacific is expected to be responsible for half of the world’s RPK growth in 2024, driven largely by recovering domestic markets in China, Japan, and Australia,” it explained.
RPK, which represents the number of kilometers traveled by paying passengers, in this region is estimated to rise by 17.1 percent this year.
Globally, the trade group projected net profits of the aviation sector to grow by 11 percent to $30.5 billion this year from $27.4 billion last year.
“In a world of many and growing uncertainties, airlines continue to shore up their profitability. The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses,” Walsh said. INQ