Airlines now face a new problem that is difficult to ignore in the world of air travel that is growing maintenance expenses. It is now more expensive than ever to keep airplanes in good condition and safe. The rising cost of maintenance repair and overhaul is a significant issue for airlines at the same time that their business is expanding. This article examines the causes of the increase in MRO expenses and how it has affected the airline sector.
Introduction to MRO Costs
All the expenditures paid by airlines to keep their aircraft in top shape, compliant with regulations, and maintaining operating effectiveness are included in maintenance, repair, and overhaul costs. These expenses are required to maintain both the aircraft’s durability and passenger safety. For instance, American Airlines just spent $2.68 billion on maintenance, supplies, and repairs, a 35.6% increase from 2021. In 2019, that amount was $2.38 billion.
Technological Advancements
The quick development of aviation technology is one of the key causes of the rise in MRO expenses. Modern airplanes come with cutting-edge systems and parts that need to be maintained with specific tools and training. The knowledge and experience needed for MRO can increase as aircraft become more complicated, raising expenses for airlines.
Aging Aircraft Fleet
Due to the high expenses involved in buying new aircraft, the average age of the fleets of several airlines has been rising. Older aircraft require more regular and involved maintenance to maintain safety regulations, which raises MRO costs. Also, an idea of how much money airlines spend on maintenance can be taken from United Airlines, which spent $2.15 billion in 2022.
Regulatory Requirements
Aviation authorities from all around the globe have set rigorous safety restrictions on the aviation sector. Although these requirements are crucial for safeguarding the safety of both passengers and crew, they also need strict and regular inspections, certifications, and modifications, all of which drive up MRO costs.
Impact on Airlines
Significant problems are being presented to airlines by rising MRO expenses. Airlines could be compelled to raise ticket prices in order to cover these costs, which might have an impact on customer demand and overall profitability. Additionally, airlines could make cost cuts in other areas, which might impair the level of service and safety.
Strategies to Mitigate MRO Costs
Airlines are looking into a number of measures to lessen the effects of increased MRO expenses. These include using preventative maintenance technology, investing in more fuel-efficient aircraft for current fleets, negotiating long-term maintenance agreements with MRO service providers, and improving spare part inventory management.
