Stock Markets February 2, 2026

Supply disruptions and political frictions weigh on aviation expansion ahead of Singapore Airshow

Industry leaders warn supply-chain constraints, certification disputes and geopolitical moves could slow recovery even as Asia-Pacific travel demand rises

By Sofia Navarro
Supply disruptions and political frictions weigh on aviation expansion ahead of Singapore Airshow

Aviation industry figures gathered in Singapore ahead of the region's largest air show to confront persistent supply-chain bottlenecks, the politicisation of certification processes and the implications of geopolitical tensions for both freight flows and fleet maintenance. Executives and regulators reiterated commitments to emissions reduction while warning that current systems must transform to support projected passenger growth.

Key Points

  • Persistent supply-chain disruption continues to affect planemakers and engine manufacturers, creating operational pressures across the aviation industry.
  • Geopolitical developments have altered air cargo flows, with Asia-North America shipments slipping 0.8% last year while Europe-Asia volumes rose 10.3%; Asia-Pacific passenger traffic is projected to grow by 7.3% in 2026.
  • Certification disputes and concerns about the "weaponisation" of supply chains, particularly for critical materials like rare earths, raise risks for cross-border aerospace production and maintenance.

Senior figures from airlines, plane and engine manufacturers and global regulators met in Singapore on the eve of the city-state's air show to address a range of challenges constraining aviation growth. Delegates discussed lingering supply-chain disruption, shifts in cargo patterns tied to geopolitical tensions and the need for coordinated action to handle a rapid expansion in passenger traffic.

Willie Walsh, director general of the International Air Transport Association, told attendees at the Changi Aviation Summit that problems in suppliers and production chains continue to impose a "major impact" on global carriers. He said those disruptions, which have affected major planemakers and engine producers since the COVID-19 pandemic, are likely to persist.

Walsh pointed to difficulties facing assemblers such as Airbus and Boeing, and noted that engine manufacturers including GE Aerospace and Pratt & Whitney are balancing conflicting demands between fitting components into new aircraft and servicing existing fleets. The result, he said, is ongoing strain across the industry.

Geopolitical developments were highlighted as a separate stressor, particularly visible in air freight movements. Walsh said the effect of geopolitical change has been "much more obvious on the air cargo side of the business than on the passenger side." He cited data showing shipments between Asia and North America fell by 0.8% last year, marking a decline after steady growth, while volumes between Europe and Asia rose 10.3%.

Despite those cargo headwinds, the Asia-Pacific region remains the fastest-growing market for air travel, driven by demand in China and India. Passenger traffic growth of 7.3% is projected for 2026, underscoring expectations of continued expansion in the region.

Toshiyuki Onuma, the newly elected president of the governing council of the International Civil Aviation Organization - the United Nations' aviation body - warned that current infrastructure and systems will not be adequate if growth continues on the projected trajectory. "A system built for 4 billion passengers cannot support three times that number without transformation," he said, and urged acceleration of efforts to achieve net-zero carbon emissions by 2050.

Onuma was careful to avoid taking a public position on a recent dispute that has placed aircraft certification at the centre of political debate. The controversy escalated after remarks by U.S. President Donald Trump last week urging Canada to certify certain U.S.-designed Gulfstream business jets or face tariffs. Onuma said ICAO would remain "technically neutral" and explained that if it becomes evident that member states are violating the Chicago Convention, ICAO's role would be to ask the state to rectify the situation. He did not specify whether that process would apply to the recent U.S. intervention.

Industry and regulatory figures at the conference expressed concern that certification could become politicised. A senior regulatory official told reporters that aircraft certification must not become a bargaining chip: "There can be no bargaining over certification."

European officials also sounded an alarm about the "weaponisation" of supply chains as geopolitical contests reshape trade and industrial dependencies. EU Transport Commissioner Apostolos Tzitzikostas warned that such dynamics pose a real risk to the development of aviation in the years ahead. His remarks mirrored earlier worries from France's aerospace industry about the vulnerability of cross-border supply networks built during an era of globalisation.

Aerospace executives attending the summit highlighted rare earths as a specific source of pressure within supply chains. Those metals, used in components for jet engines, are concentrated in global supply by certain countries, creating a single-point dependency that remains a concern despite recent diplomatic moves to ease broader trade tensions.

Throughout the discussions, participants reiterated industry commitments to cut emissions while navigating short- and medium-term operational challenges. Speakers stressed the need for international cooperation to ensure safety, competitiveness and sustainability as aviation adapts to both demand growth and geopolitical shifts.


Contextual note: Delegates at the Changi Aviation Summit framed the issues around three core themes - persistent supply-chain disruption, the potential politicisation of certification under the Chicago Convention, and the strategic risks posed by concentration in critical materials supply. They also emphasized the necessity of coordinated policy responses to meet passenger growth and environmental goals.

Risks

  • Ongoing supply-chain bottlenecks could constrain aircraft deliveries and maintenance, affecting airlines, manufacturers and suppliers in the aerospace sector.
  • Political interference or disputes over aircraft certification could undermine globally accepted safety and regulatory frameworks, increasing uncertainty for regulators and certification bodies.
  • Concentration of critical inputs such as rare earths presents a supply vulnerability that could disrupt engine production and maintenance, with consequences for aerospace manufacturers and parts suppliers.

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