Aviation Industry Faces Repair Costs and Mechanic Shortages Despite Strong Recovery

The aviation industry is on the rebound with record passenger numbers expected in 2024, particularly in Asia-Pacific and North America. However, a new report from Allianz Commercial highlights significant challenges still facing the sector, including soaring repair costs and a growing shortage of skilled mechanics. An analysis of over 32,000 claims between 2019 and 2024, valued at $15 billion, shows that collisions and faulty workmanship account for 85% of the total claim value. The rising cost of repairs, driven by labor rates and parts costs, alongside a shortage of experienced mechanics, could lead to higher claims and potentially compromise safety.

Additionally, the industry’s push towards sustainability continues, with advancements in sustainable aviation fuel (SAF) and electric vertical takeoff and landing (eVTOL) aircraft. However, compliance with new regulations, such as the European Union’s Corporate Sustainability Reporting Directive (CSRD), is becoming a critical factor in achieving net-zero goals by 2050.