IATA chief accuses engine makers of ‘gouging’ airlines

IATA’s Walsh Blasts Engine Makers for ‘Gouging’ at Rio Summit

At the 82nd IATA Annual General Meeting in Rio de Janeiro, outgoing Director General Willie Walsh delivered a blistering farewell address on Saturday, accusing aircraft engine manufacturers of exploiting airlines while posting double-digit profit growth amid an industry-wide supply-chain crisis.

‘Stop Gouging Us’

“My message to the engine OEMs is simple — stop gouging us and get back to making great engines that work and that last,” Walsh declared in his final speech as IATA chief, noting that supply-chain failures cost airlines at least $11 billion in 2025. “Allowing these failures to extend into the next decade is totally unacceptable to the customers.”iata

Walsh pointed to the paradox of “deeply disappointed customers” who have not dented manufacturer finances. “Most engine manufacturer profits were up double digits,” he said. “I cannot share my reaction to this paradox in polite company.”iata

The speech came as Walsh prepares to leave IATA to become CEO of IndiGo Airlines. The AGM, hosted by LATAM Airlines Group and running June 6-8, has drawn some of the industry’s most prominent figures to Brazil’s second city.travelextra

Kirby Takes Aim at Rolls-Royce

United Airlines CEO Scott Kirby amplified the frustration in a panel discussion, singling out Rolls-Royce for what he described as indifference to airline customers. “GE is the best, I think Pratt & Whitney is working hard, so I appreciate their attitude and what they’re doing, and my sentiment is that Rolls doesn’t care,” Kirby said.thebulkheadseat

Kirby said between 800 and 900 commercial aircraft are currently grounded worldwide due to engine-related issues. United had previously ordered 45 Airbus A350 aircraft but dropped the agreement over dissatisfaction with how Rolls-Royce handled contractual obligations. The dispute escalated into a legal battle after United filed a breach-of-contract claim in December 2025 seeking reimbursement of a $175 million engine down payment, according to regulatory filings. Rolls-Royce terminated the relevant contract and countered with its own breach allegations.reuters

Rolls-Royce CEO Tufan Erginbilgic said last week in London that the company had fulfilled all contractual commitments and expressed a desire to rebuild the relationship. A spokesperson responded to Kirby’s remarks by saying “every customer is important.”thebulkheadseat

An Industry Under Strain

The confrontational tone at the Rio summit reflects deeper pressures on global aviation. Walsh noted that the aircraft order backlog now exceeds 18,000, while the average fleet age has hit a record 15.2 years. Airlines are short more than 5,000 fuel-efficient replacement aircraft they had planned on receiving, driving up lease rates and maintenance costs.iata

The engine problems span multiple manufacturers. Pratt & Whitney’s PW1000G geared turbofan engines, which power the Airbus A320neo family, have experienced widespread reliability issues, while CFM International LEAP engines and Rolls-Royce Trent engines have also faced supply-chain challenges. Walsh also highlighted skyrocketing jet fuel prices driven by conflict in the Middle East, which he expects will halve industry profits from $45 billion in 2025 to $23 billion in 2026.reuters