Asia-Pacific airlines have rebounded in travel demand post-pandemic, yet earnings remain under strain due to supply chain challenges that have hampered operations, say industry leaders.
Issues such as shortages of aircraft parts, labour, and new planes, compounded by an unexpected need for extensive repairs on newer engines, are extending maintenance times and forcing airlines to make operational adjustments.
At the Association of Asia Pacific Airlines’ (AAPA) annual meeting in Brunei, Director General Subhas Menon highlighted that supply chain disruptions are currently the most significant hurdle for the sector.
Engine maintenance turnaround times are reaching unprecedented lengths, prompting airlines to reduce flights, transfer parts between aircraft, and lease engines or planes temporarily to maintain schedules.
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Thai Airways’ CEO Chai Eamsiri noted that servicing Rolls-Royce engines on its Boeing 787 fleet now takes around six months, double the time required before the pandemic. As a result, Thai Airways had to increase aircraft operating hours from 12.5 to over 13 hours daily to meet demand.
Other airlines, including Singapore Airlines, Malaysia Airlines, and Kazakhstan’s Air Astana, voiced similar frustrations over prolonged maintenance periods, calling on manufacturers to address the persistent bottlenecks. Air Astana CEO Peter Foster emphasised that aviation suppliers need to improve their delivery timelines to meet industry needs.
Malaysia Airlines, facing disruptions partly due to these supply chain constraints, reduced its network capacity by 20% in September and saw its air operator certificate shortened to one year by the country’s aviation regulator.
Pre-pandemic, engine servicing took around 55 days, but this period has now extended to over 100 days, according to Malaysia Airlines CEO Izham Ismail. Airbus and Rolls-Royce, addressing these issues, stated they are working to resolve the bottlenecks and to improve financing options for suppliers.
While Asia-Pacific travel demand has nearly returned to pre-pandemic levels, operational and earnings challenges stemming from ongoing supply chain issues continue to test airlines’ resilience in the region.
