Key Takeaways
• Over 20% of 2025 aircraft deliveries to Asia-Pacific airlines are delayed due to severe supply chain disruptions.
• The Asia Pacific Airlines Association urges governments and suppliers to solve delays risking jobs, growth, and environmental progress.
• Record load factors show strong demand, but staff shortages and trade tensions block new flights and threaten regional competitiveness.
Mounting supply chain disruptions are putting the Asia-Pacific region’s aviation industry under serious strain. The Association of Asia Pacific Airlines (AAPA), the group representing most of the region’s leading international carriers, is warning that these problems are now the single biggest threat to growth—even as pent-up demand for air travel stays high. Delays in aircraft deliveries, rising costs, staff shortages, and trade troubles are all stacking up, putting the industry’s economic and environmental goals in jeopardy.
Asia Pacific Airlines Association Sounds the Alarm
The Asia Pacific Airlines Association, or AAPA, has become the main voice for airlines across the region. It was started in 1966 and is based in Kuala Lumpur, Malaysia. It now represents 17 airlines. Together, these Asian airlines handle around 20% of all passengers flying worldwide and about 33% of all air cargo moving across the globe. As reported by VisaVerge.com, these numbers show just how important the region is—not only for travelers but for global shipping as well.
Subhas Menon is the Director General of the AAPA. Since taking the position in March 2020, he has spoken out about the mounting concerns facing airlines. According to Menon, “Governments and suppliers must step up to tackle this disconnect” between booming demand for flights and the real ability of airlines to take advantage of it. Right now, he says, factors outside the airlines’ control are shutting down growth opportunities, which could have real consequences for jobs, business, and the broader economy.
Supply Chain Crisis Impact: What’s Going Wrong?
Supply chain disruptions are not new, but their effects on airlines have grown worse since the COVID-19 pandemic. Menon says the main trouble comes from several linked problems:
- Airlines cannot get the parts they need to fix or upgrade planes on time.
- Not enough qualified workers are available for key tasks like maintenance and certification.
- There are higher standards that planes and parts must meet, which can slow things down.
- Conflicts in places like Ukraine and the Middle East have closed some airspace, lengthening flight times and adding further pressure.
The Asia Pacific Airlines Association says all of these issues are making it hard for airlines to expand. Over one-fifth of new aircraft deliveries that were scheduled for 2025 will likely be delayed because planes and engines are not arriving from manufacturers on time. This means airlines can’t replace older planes or add enough flights to meet growing demand. As a result, planes flying in the region are fuller than ever, with a record load factor of 83%. In plain terms, this means that almost every seat is sold, but there still aren’t enough flights to go around.
Delayed Aircraft Deliveries: Making a Bad Situation Worse
Airlines depend on a steady flow of new planes to keep up with travelers’ and shippers’ needs. However, due to the broken supply chain, deliveries are simply not happening fast enough. More than 20% of aircraft deliveries set for next year are at risk of delay.
When airlines cannot receive new planes:
- They have to keep flying old planes, which are less fuel-efficient and more expensive to maintain.
- It becomes difficult to open new routes or add extra flights.
- Businesses relying on quick shipping may face extra delays.
These delays make it harder for the whole region to stay connected, which is vital not just for tourism, but also for trade and the movement of goods.
How Supply Chain Disruptions Hurt the Economy
AAPA emphasizes that aviation is a powerful driver for jobs and development in the Asia-Pacific region. It keeps economies growing by allowing people to travel for business and pleasure, and by helping goods reach customers quickly and safely. When the airlines can’t expand to keep up with demand, the following issues arise:
- Trade slows down, because goods can get stuck or delayed.
- Jobs that depend on tourism and business travel are put at risk.
- Higher costs for materials and equipment are passed on to airlines, and then to passengers and businesses.
- Worries over trade tensions (like tariffs imposed by the United States 🇺🇸 or other governments) make it even harder to build or fix planes, since parts come from all over the world.
According to Menon, with trade barriers on the rise and retaliatory tariffs possible, the already fragile airline ecosystem could break down further. Since building a plane relies on sourcing pieces from many countries—such as engines from Europe, software from the United States 🇺🇸, and interiors from Asia—a single block in the supply chain can hold up a whole batch of aircraft deliveries. That means higher prices, fewer jobs, and less reliable transportation for everyone.
Industry’s Green Goals at Risk
Another major worry is that these delays are slowing down progress towards more eco-friendly flying. The aviation industry has a goal to cut its net carbon emissions to zero by 2050. Airlines plan to get there mainly by switching to new, cleaner planes and by using Sustainable Aviation Fuel (SAF). But the current supply chain issues are putting that plan in danger.
Here are some of the key problems:
- Airlines must keep older, more polluting planes in service for longer because they can’t get new planes on time.
- There’s not enough SAF available to meet airline demand, making real progress on emissions tough.
- SAF costs much more than regular fuel—so even when it’s available, airlines may struggle to pay for it.
- Rules around making, selling, and using SAF are unclear and often differ from country to country, which creates confusion and hesitancy.
When airlines can’t switch to cleaner equipment, the entire region risks falling behind in reaching climate goals. This has real consequences, since Asian countries are already under extra pressure from environmental groups and international partners to do their part in fighting climate change.
Rising Costs and Extra Red Tape
Costs across the board are going up, hitting airlines and passengers alike. Raw materials and equipment are more expensive, so it costs more to build new planes and fix old ones. The Asia Pacific Airlines Association also points to more regulatory hurdles facing airlines. Rules meant to keep passengers safe are important, but when combined with other obstacles, they can make it very hard for airlines to operate smoothly.
Trade tensions and tariff policies, especially those led by the United States 🇺🇸, raise the price of importing essential parts even further. For example:
- Engine and aircraft makers might face higher duties on items sold across borders.
- Retaliatory tariffs could disrupt the flow of materials between Asia, Europe, and the United States 🇺🇸.
- Airlines caught in the middle may end up paying more for the same equipment, leading to higher ticket prices.
Given how interconnected aviation is—with supply chains reaching into every continent—even a small problem in one link can affect passengers and shippers thousands of miles away.
The AAPA’s Role and Advocacy
The AAPA acts as a common platform for its 17 member airlines to work together, share challenges, and speak as one voice with government and suppliers. You can learn more about their mission and activities on the AAPA’s official website. The association keeps its focus on protecting the sustainability, quality, and competitiveness of air travel in the Asia-Pacific region.
The group’s latest calls for action include:
- Asking governments to work with airlines and suppliers to solve supply chain problems faster.
- Pressing for clearer, more consistent rules on SAF so it can be produced and used at scale in the region.
- Encouraging suppliers and manufacturers to boost both capacity and quality so airlines can receive planes and parts on schedule.
AAPA believes if these changes don’t happen soon, the risk is more than just short-term inconvenience. Entire communities and industries could miss out on growth and development.
What’s at Stake for the Region?
If supply chain disruptions continue, the impacts may be felt for years to come. For the Asia-Pacific region, the stakes are especially high because:
- The region is already one of the world’s busiest for both passengers and air cargo.
- Businesses depend on fast, reliable flights to deliver products and drive economic growth.
- Millions of jobs in tourism, trade, and services could be affected.
- Delayed aircraft deliveries mean holding back new routes, newer jobs, and better choices for travelers and business people.
- Efforts to fight climate change rely on airlines being able to replace old planes with newer, cleaner models.
Industry leaders fear that if things don’t improve, competitors from outside the region may take business away, governments may rethink investment in aviation, and the region may miss long-term opportunities to connect, grow, and prosper.
Historical Context: Why It Matters Now
The aviation sector in the Asia-Pacific region has seen massive growth over the past two decades. Rapid deregulation, strong economic gains, and a rising middle class have all led to more people flying than ever before. Air cargo has been the backbone of quick global trade, making “just-in-time” shipping possible for everything from electronics to clothing.
The COVID-19 pandemic dealt airlines a heavy blow—closing borders, drying up demand, and nearly halting aircraft deliveries. Now, as borders have reopened and demand has returned, airlines face a new challenge: infrastructure and supply chains aren’t keeping pace with demand. According to the Asia Pacific Airlines Association, unless these issues are fixed soon, the gains made in recent decades could quickly be lost.
Different Views and Potential Ways Forward
While the Asia Pacific Airlines Association calls on governments and suppliers to act quickly, others argue the industry needs to adapt as well. Some government regulators want even higher safety standards, even if that means slower approvals. Economists warn that completely globalized supply chains can break down in times of crisis, and local manufacturing should get more support. On the other hand, airlines worry that too much delay or extra cost could make Asia-Pacific less competitive compared to other parts of the world.
Most industry leaders believe some answers lie in:
- Investing in regional manufacturing and backup suppliers.
- Developing better partnerships between airlines, manufacturers, and governments.
- Creating clearer, shared rules around sustainability and new fuels.
- Improving training programs to fix the shortage of skilled aviation workers.
What Can Passengers, Businesses, and Investors Expect Next?
Travelers may notice higher ticket prices, fewer choices for flights, and less reliable schedules if these supply chain disruptions and delayed aircraft deliveries continue. Businesses that rely on quick shipments may also need to plan for possible delivery delays and higher freight costs. Investors watching the sector may see continued volatility until supply chain fixes start to deliver real results.
Still, the Asia-Pacific region remains a vital player in the world of aviation and trade. If its airlines and partners can address these barriers, there could be new opportunities for better, cleaner, and faster travel across the region and beyond.
For more detailed information on the challenges and priorities outlined by the AAPA, readers can check official updates and reports on the AAPA’s website.
Key Takeaways
- The Asia Pacific Airlines Association represents 17 major airlines and is sounding the alarm on supply chain disruptions.
- Supply chain problems are delaying over 20% of planned aircraft deliveries in 2025, despite strong travel and shipping demand.
- The squeeze is raising costs, slowing growth, risking jobs, and blocking progress towards climate goals.
- The association is calling for governments and suppliers to work together for quick and lasting solutions.
- Unless these issues are solved soon, travelers, businesses, and the economy across the region could face lasting challenges.
If you’re planning to fly to, from, or within the Asia-Pacific region, or if your job or business depends on aviation, it’s a good idea to stay informed about these supply chain disruptions. The Asia Pacific Airlines Association continues to push for timely action, aiming to ensure that the region’s airlines can keep supporting trade, economic development, and a greener future.
Learn Today
Supply Chain Disruptions → Interruptions or delays in the flow of parts, equipment, or labor needed for airline operations and aircraft manufacturing.
Sustainable Aviation Fuel (SAF) → Alternative jet fuel made from renewable sources, designed to reduce carbon emissions compared to traditional aviation fuels.
Load Factor → The percentage of available seats on an aircraft that are filled with passengers; a key measure of airline efficiency.
Retaliatory Tariffs → Extra trade taxes imposed by one country in response to tariffs from another, often disrupting international supply chains.
Asia Pacific Airlines Association (AAPA) → A trade group representing 17 major Asia-Pacific airlines, advocating for the industry’s growth, safety, and sustainability.
This Article in a Nutshell
Asia-Pacific’s aviation faces critical disruption: supply chain bottlenecks delay new aircraft, jeopardizing sustainable growth. Airlines must retain older planes, raising costs, environmental concerns, and hindering progress. Urgent collaboration between governments and suppliers is needed to resolve shortages, stabilize trade, and ensure the region’s airlines meet economic and climate goals for the future.
— By VisaVerge.com
