When old fleets meet new challenges: The MRO industry’s road ahead
Michael Kazamias – Technical Services Manager, Bird Aviation
Historically, the aviation sector has experienced cyclical fluctuations in MRO demand, influenced by economic conditions, fleet expansions, and aircraft retirement schedules. Throughout my 40 years in the industry, I’ve seen many shifts, but nothing compares to the disruption caused by the pandemic. It led to widespread fleet groundings, accelerated retirements, and deferred maintenance activities, which drastically altered the usual patterns we relied on. As global air travel rebounded -surpassing pre-pandemic levels in 2024- the industry confronts a new set of challenges. If I had to choose the major one it would be the life expansion of the existing aircraft, in the same time of production difficulties for the manufacturers.
It’s a hard combo, isn’t it?
The aging aircraft phenomenon and its effects
The global aviation fleet is experiencing a notable increase in average aircraft age, primarily due to delays in new aircraft deliveries. Airbus, for instance, has postponed the launch of its A350 freighter by up to a year[1] because of persistent supply chain issues, particularly with fuselage parts from Spirit AeroSystems. This delay affects airlines’ plans to update their fleets, compelling them to extend the operational life of existing aircraft.
Older aircraft inherently demand more intensive maintenance, including heavy checks, engine overhauls, and structural inspections. This increased demand comes at a cost, with airlines facing higher maintenance expenses that either squeeze profit margins or result in higher ticket prices for passengers. The aircraft maintenance market is projected to grow from $46.13 billion in 2024 to $48.46 billion in 2025, at a compound annual growth rate (CAGR) of 5.1%[2]. This growth is largely attributed to the lifecycle extension of aircraft and an increased emphasis on safety.
The role of increased travel demand
According to the Fleet & MRO Forecast of the Aviation Week Network, the aviation industry is projected to surpass $1 trillion in revenue for the first time in 2025, with passenger numbers exceeding five billion and the number of flights reaching 40 million.
This rapid rebound in travel demand has prompted airlines to maximize aircraft utilization, leading to increased flight hours and, consequently, accelerated wear and tear on aircraft components.
This heightened operational tempo necessitates more frequent maintenance interventions. However, MRO providers are grappling with labor shortages and supply chain disruptions, which impede their ability to deliver quick turnaround times. The imbalance between rising maintenance needs and constrained MRO resources presents a significant challenge to the industry.
The current bottlenecks in MRO and how the industry is adapting
The MRO sector faces several critical bottlenecks. Some of them, such as labor shortages or the need for financial planning, have already been discussed by Bird Aviation’s management team. During the COVID era, many MRO engineers left the workforce -some retired, while others transitioned to different industries- leaving a lasting gap in skilled labor. Although there are way more factors making our life a bit more challenging:
Supply chain delays: Persistent supply chain challenges continue to impact nearly every aspect of the ecosystem, leading to increased material costs and extended lead times for critical components.
Capacity constraints: MRO facilities are operating at or near full capacity, with hangars, equipment, and infrastructure under significant pressure to accommodate the increased demand. In our case, having finished our new hangar just 3 months ago, we already are running on full capacity and getting ready for further expansions to cover the demand.
To address these challenges, the industry is, or has to, adopt several strategies: One key approach is investing in automation and predictive maintenance, with operators increasingly utilizing Integrated Aircraft Health Management (IAHM) systems to improve maintenance programs and predict potential issues before they escalate. Additionally, MROs are forming strategic partnerships to expand capacity, share resources, and mitigate individual constraints, enabling them to better serve the growing market demand.
The MRO industry has no other choice but to adjust to a new normal where demand consistently outpaces short-term supply. With the circumstances described, airlines are sustaining the need for extensive maintenance, from heavy checks to engine overhauls. This puts additional pressure on MRO providers, requiring them to scale up operations rapidly while maintaining stringent quality and safety standards.
At the same time, the introduction of new-generation aircraft with advanced technologies will bring different maintenance demands, requiring MROs to adapt their capabilities and workforce expertise. Proactive workforce development and long-term supply chain stabilization are crucial to meeting these challenges.
Looking ahead, the success of MRO operations will rely on strong collaboration between airlines, suppliers, and MROs to manage growing demand and industry challenges. As fleets age and supply chain disruptions persist, partnerships will be crucial. Automation will also play a key role in improving efficiency, reducing turnaround times, and easing the strain on personnel. Those who adapt quickly, invest in smarter solutions, and foster strong partnerships will be best positioned to navigate the demands of the years ahead.
