File picture: Willie Walsh, Director-General, International Air Transport Association (IATA)
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Global airlines' grouping IATA's chief Willie Walsh on Sunday urged aircraft engine makers to "stop gouging" the carriers as he flagged serious concerns over persistent supply chain woes.In 2026, airlines are projected to see their net profit nearly halve to $23 billion from $45 billion last year, he said, and added that the net margin is estimated to decline to 2 per cent from 4.2 per cent.The International Air Transport Association (IATA) represents over 370 airlines that account for around 85 per cent of the global air traffic.Addressing the 82nd IATA Annual General Meeting here, Walsh said airlines face higher fuel costs, with fleets that are less efficient than others because the aerospace supply chain continues its failure to deliver aircraft engines and products."My message to the engine OEMs (Original Equipment Manufacturers) is simple. Stop doubting us and get back to making great engines that work and that last."Allowing these failures to extend into the next decade is totally unacceptable to your customers," Walsh said.Airlines have been grappling with supply chain challenges, including engine woes and delayed aircraft deliveries.The aircraft order backlog is over 18,000 aircraft, and the average fleet age is at a record 15.2 years."Being short of over 5,000 more efficient replacement aircraft than we had counted on means missed efficiency gains, not to mention higher release rates and increased maintenance costs."In total, the supply chain failures cost airlines at least $11 billion in 2025,” Walsh said.Walsh is set to take over as the CEO of India's largest airline, IndiGo, later this year.Published on June 8, 2026
