Global aviation maintenance, repair and overhaul spending topped 136 billion dollars in 2025, up 8 percent over 2024, and is on pace to approach 193 billion dollars by the end of the decade, according to Oliver Wyman's 2026 MRO survey. The firm says the growth reflects an extended maintenance super cycle driven by an aging fleet and durability challenges on newer aircraft types.

Material costs are running ahead of expectations by 100 to 200 basis points per segment in 2025, and survey respondents expect further inflation this year. About 90 percent of respondents said they are experiencing tariff impacts, particularly on component purchases, repairs and engine overhauls. Material and labor shortages, along with cost management, remain the top disruptors identified by survey respondents for a third straight year, with geopolitical instability and tariffs newly rising to second place.

Engine shop visits, which account for more than half of total MRO spend, are taking longer and costing more than expected. Turnaround times on narrowbody engines now regularly run 180 to 200 days or more, well above pre-pandemic norms, and two thirds of respondents said shop costs for the newest narrowbody engines are exceeding expectations by 21 percent or more.

Labor rate inflation has settled at 5.5 to 6.0 percent across most categories, compared with about 3.0 percent before the pandemic. Two thirds of respondents said finding qualified aircraft technicians and mechanics has become moderately to very challenging, and more than half expect technician attrition to worsen next year.

More than 150 aviation professionals took part in the survey, including airline operators, independent and airline-owned MROs and original equipment manufacturers.

Source: Oliver Wyman - https://www.oliverwyman.com/our-expertise/insights/2026/apr/aviation-mro-labor-and-material-supply-chain-paradigm.html