Airlines Shift Focus to Reliability and Loyalty Revenue Amid Aircraft Shortages

The global airline industry is facing a prolonged shortage of new aircraft, with transport experts suggesting that full supply chain recovery may not materialize until the early 2030s. This capacity constraint is forcing carriers, particularly in markets like Malaysia, to pivot their strategy from business expansion to operational resilience and disciplined fleet utilization. The International Air Transport Association (IATA) estimates that these supply chain bottlenecks, driven by factors like longer aircraft certification times and limited supplier competition, could cost the aviation sector more than US$11 billion globally by 2025.

Central to resilience is strengthening engineering and maintenance, repair, and operations (MRO) capabilities. Since the Covid-19 pandemic, the turnaround time for servicing aircraft engines has increased sharply, leading to instances where aircraft are grounded for months awaiting maintenance slots or replacement components. To combat this reality, airlines are advised to deepen MRO partnerships with manufacturers to secure spare-engine pools and adopt predictive maintenance tools. Furthermore, carriers are narrowing their focus to high-performing routes, ensuring disciplined deployment of existing, limited assets.

Beyond operational stability, the next frontier for commercial resilience lies in maximizing non-seat revenue streams. With profit per passenger globally remaining low (around US$7.90), high-performing carriers worldwide are transforming loyalty programs and digital platforms into major profit engines. These revenues are scalable, light on capital, and significantly more stable than volatile ticket sales. While cargo remains a strong revenue opportunity, particularly in regional freight hubs, experts argue that expanding loyalty and digital capabilities offers the most durable revenue path for carriers that cannot depend on acquiring new aircraft for growth.