Aviation Support Services NAICS 4881

May 22, 2025 - Summer Travel Demand Highlights Jet Shortage

• Airlines experienced strong demand for flights headed into the 2025 summer travel season, but that good news is also shining a light on the shortage of available commercial jets due to production delays at the world’s largest airplane manufacturers - Boeing and Airbus. Both companies have fallen short of their deadlines for delivery of new aircraft to customers, resulting in industry-wide capacity boosts of only 1-3% for the summer season, according to EasyJet CEO Kenton Jarvis. Europe’s Airbus delivered 56 jets in April 2025, an 8% drop year over year. Boeing, which has been consumed with safety crises and production problems for several years, is slowly improving this year and delivered 45 jets in April, which doubled from March. However, airplane delivery totals for both companies in Q1 indicate they will have trouble meeting their targets for the year, per aviation analytics firm Cirium.
• Staffing problems, aging air traffic control equipment, and government-induced chaos from the Trump administration’s culling of staff at the Federal Aviation Administration (FAA) have disrupted air travel in early 2025. Shortly after taking office, Trump and Elon Musk’s government efficiency department began cutting FAA staffing citing diversity initiatives. Amidst the cuts, several fatal air collisions and ground mishaps occurred in quick succession. The staff cuts at the FAA came despite years of warnings by government officials of air traffic controller staffing shortfalls due to low pay, long hours, and the significant stress that goes with the job. Alongside these challenges, the Transportation Department is reviewing a 15-year, $2.4 billion contract with Verizon to upgrade air traffic equipment, saying the company isn’t moving fast enough.

• The International Monetary Fund projects global trade volume will increase 3.2% in 2025, driven by easing geopolitical tensions, expanding e-commerce, and growing consumer demand in emerging markets. Aviation support services may benefit from increasing air cargo traffic. These developments provide fertile ground for freight forwarders and logistics providers to enhance their services and seize new opportunities in cross-border shipping, according to Air Cargo Week.
• The aviation industry has seen substantial merger and acquisition activity in recent months, according to Goldman Sachs. Alternative investment firm Stonepeak agreed in October to acquire aircraft leasing and support provider Air Transport Services Group for about $3.1 billion. Apollo Global Management acquired Barnes Group, a 167-year-old provider of engineered products and innovative solutions, for $3.6 billion in early October. Snow Peak Capital purchased TurbineAero, a provider of maintenance, repair and overhaul services for aeroengine components, while H.I.G. Capital acquired STS Aviation Group from Greenbriar Equity Group.