MRO & Manufacturing
Middle East Conflict Disrupts Aviation Supply Chain and Fuel Prices in 2026
The 2026 Middle East conflict causes airspace closures, delays aircraft parts shipments, and drives jet fuel prices over 60%, impacting global aviation.

This article is based on an official press release from Locatory.
The escalation of the Middle East conflict in early March 2026 has severely disrupted the global aviation ecosystem, triggering widespread airspace closures and a historic surge in jet fuel prices. As regional instability reshapes the global parts and logistics network, routine procurement has shifted into a highly dynamic, risk-sensitive operation.
According to an official press release from Locatory, the central Middle East corridor is effectively non-operational for routine commercial traffic as of late March 2026. The disruption has constrained supply chain flows, increased transit complexity, and placed sustained pressure on MRO networks worldwide.
With established trade lanes forced to reroute through longer and less efficient corridors, the aviation industry is facing a massive reduction in air cargo capacity. This bottleneck has left critical aircraft parts stranded in transit, delaying aircraft returns to service and extending Aircraft on Ground (AOG) events across the globe.
The Operational Airspace Picture and Rerouting
Following drone and missile incidents in the UAE and Qatar, authorities have closed large portions of regional airspace across Iran, Iraq, Kuwait, and Syria. Locatory.com reports that surrounding areas, including Israel, Bahrain, Saudi Arabia, and Oman, are operating under varying restrictions and conditional access.
Consequently, Europe–Asia flight corridors have been forced to reroute. Traffic is now primarily concentrated into two constrained paths: a southern route via Egypt and Saudi Arabia, and a northern route via the Caucasus. Both options add several hundred miles to standard Gulf routings, directly increasing flight times and operating costs.
Flight Suspensions and Bottlenecks
Major airlines have drastically reduced or suspended services to key regional destinations. According to Locatory.com, Cathay Pacific has extended the suspension of passenger flights to Dubai and Riyadh until May 31, 2026. Air Baltic has suspended Dubai operations until October and Tel Aviv services into late April, while Aegean Airlines canceled services across multiple Middle Eastern destinations into May.
The rerouting has created severe bottlenecks. Industry estimates (AirPro News research) indicate that carriers are aggressively pivoting to direct Asia–Europe flights, squeezing roughly 23% of global demand into a narrow 150km-wide corridor over Azerbaijan.
Air Cargo Capacity and Freight Rates
The Middle East has long served as a central transshipment hub for global aviation. In 2025, the Europe–Asia corridor accounted for 21.5% of global air freight, with Dubai International Airport handling over 1 million tons of cargo in the first half of the year alone, according to Locatory.com.
The conflict’s impact on logistics has been immediate. Locatory.com notes that by mid-March 2026, global air cargo capacity had contracted by approximately 22%, with freight prices increasing up to four times compared to pre-conflict levels. Industry estimates (AirPro News research) further reveal a deficit of over 520,000 tonnes of international cargo capacity within a two-week window, with capacity on the Asia–Middle East–Europe corridor declining by 39%.
The Squeeze on Aircraft Parts
The capacity squeeze has driven up freight rates significantly. Industry estimates (AirPro News research) show that global air cargo spot rates jumped 10% week-on-week in mid-March, while rates from India to Europe surged by approximately 80%, and prices from Hong Kong to Europe cleared $5.15 per kilogram.
For the aviation supply chain, this means critical components are stranded. In 2025, 6.7% of global aerospace air shipments moved to or from the Middle East, according to industry estimates (AirPro News research). Locatory.com states that transit times for aviation parts have increased by an estimated 20% to 40%, directly impacting time-critical shipments such as engine rotables and avionics components.
“[There is] an absolute halt of the supply chain to the Middle East.”
MRO Network Strain and Stranded Assets
The Middle East houses a dense MRO infrastructure. Locatory.com values the regional MRO market at roughly $10.55 billion in 2026, supported by a network of 25 to 30 major tier-one providers operating more than 100 large-scale facilities.
Logistical constraints are holding aircraft, engines, and components in storage or at MRO facilities. Locatory.com highlights that operators must preserve these stranded assets under controlled conditions, generating significant costs that can reach several thousand dollars per unit without producing revenue. Furthermore, war risk premiums have risen sharply in areas near conflict zones, in some cases by 50% to 500%.
Shifting Maintenance Hubs
With the steady inflow of components disrupted, MRO activity is gradually shifting toward lower-risk jurisdictions like Turkey and parts of Saudi Arabia. Locatory.com notes that this sudden shift is creating new bottlenecks and extended queue times in those locations.
Amyr Qureshi, SVP at Aventure Aviation, highlighted the domino effect of delayed parts, noting that grounded aircraft must remain airworthy for when airspace reopens.
“If the part doesn’t arrive on time the airplane sits in the hangar more.”
Surging Fuel Prices and Airline Economics
The conflict has caused one of the most severe fuel shocks in aviation history. The Strait of Hormuz, which saw roughly 20 million barrels of crude oil and petroleum products pass daily in 2025, is now largely closed to commercial traffic, reducing tanker movements by 70% to 80%, according to Locatory.com.
Jet fuel prices have surged significantly since late February 2026, rising from around $87 to between $150 and $200 per barrel. Locatory.com notes this as an over 60% increase, while industry estimates (AirPro News research) place the spike between 76% and 135%. Locatory.com explains that rerouted flight paths add up to two hours on long-haul sectors, increasing fuel burn by around 20% while carriers pay 80% to 100% more per gallon.
To preserve liquidity, airlines are deferring non-critical shop visits and extending the time on wing for engines and components. However, as fuel becomes more expensive, even small declines in efficiency translate into disproportionately higher operating costs.
AirPro News analysis
We observe that the compounding effects of airspace closures, surging fuel costs, and stranded assets are forcing a broader realignment of global air cargo flows and MRO networks. While the immediate impact on global MRO demand appears manageable, we note that a prolonged conflict could force airlines to retire older, maintenance-heavy aircraft due to high operating costs.
Major manufacturers like Boeing are already asking suppliers to evaluate their exposure to the region’s shipping and logistics routes, as even minor delays risk disrupting assembly schedules. To navigate this constrained environment, we see aviation stakeholders prioritizing real-time inventory visibility and forward-positioning critical components. Digital aviation marketplaces are becoming increasingly vital for operators to track supply across multiple hubs and source available parts outside of traditional, now-disrupted trade lanes.
Ken Herbert, Analyst at RBC Capital Markets, views the conflict as a risk to global travel but remains cautious about immediate sector-wide disruptions.
“…we do not see a meaningful impact on the MRO industry in the short term.”
Frequently Asked Questions (FAQ)
How much have jet fuel prices increased due to the 2026 Middle East conflict?
According to Locatory.com, jet fuel prices surged over 60% since late February 2026, rising from approximately $87 to between $150 and $200 per barrel.
Why are aircraft parts delayed?
Airspace closures have forced cargo flights to reroute, reducing global air cargo capacity by approximately 22% by mid-March 2026. Locatory.com reports that transit times for aviation parts have increased by 20% to 40%.
How is the MRO sector responding?
MRO activity is shifting from conflict-adjacent zones to lower-risk jurisdictions such as Turkey and parts of Saudi Arabia, though this is creating new capacity constraints and extended queue times in those areas.
Sources
Photo Credit: Locatory
MRO & Manufacturing
Lion Group Opens Batam Aero Engine MRO Facility in Indonesia
Lion Group launched Batam Aero Engine on Aug 19, 2026, offering engine and APU MRO services to serve Southeast Asian operators.

Lion Group has officially commenced operations at its new Batam Aero Engine maintenance, repair, and overhaul (MRO) facility in Indonesia, aiming to capture a larger share of the Asian engine maintenance market and reduce domestic reliance on foreign service providers.
The facility, which opened on August 19, 2026, provides both on-wing and off-wing maintenance for jet engines, turboprop engines, and Auxiliary Power Units (APUs). The Launch was detailed in a press release issued by Lion Group on August 21, 2026, highlighting the company’s push to localize critical aviation supply chains.
Technical capabilities and infrastructure
Batam Aero Engine enters the market with specialized diagnostic and repair capabilities designed to service a variety of powerplants. According to the Lion Group press release, the facility is equipped to perform complex procedures including Low Pressure Turbine (LPT) module replacements.
The maintenance center also features advanced borescope inspection equipment. Certified personnel will utilize IPLEX NX, IPLEX GX/GT, and Mentor Flex systems to conduct internal engine diagnostics. These capabilities allow technicians to assess engine health and identify potential defects without requiring full engine teardowns, thereby reducing maintenance turnaround times for operators.
Strategic expansion in the Asian MRO market
The inauguration event in Batam drew key figures from both the company and Indonesian regulatory bodies, including Lion Group Founder Rusdi Kirana and Batam Mayor Dr. Amsakar Achmad. The strategic placement of the facility in Batam leverages existing industrial infrastructure and proximity to regional trade routes to attract maintenance contracts from across Southeast Asia-Pacific.
Lion Group President Director Captain Daniel Putut Kuncoro Adi emphasized the dual focus of the new enterprise.
“We hope this facility can serve domestic needs as well as friendly countries and further strengthen Indonesia’s aviation industry,” Adi stated, according to reporting by Aviation Business News.
Indonesian regulators also view the facility as a step toward greater self-sufficiency in the aviation sector. Sokhib Al Rokhman, Director of Airworthiness and Aircraft Operations at Indonesia’s Directorate General of Civil Aviation (DGCA), highlighted the broader national strategy during the launch.
“We want to strengthen aviation independence by making Batam Aero Engine an MRO hub that is efficient, responsive, and competitive in the Asian market,” Rokhman said, as reported by ePlaneAI.
AirPro News analysis
The establishment of Batam Aero Engine represents a calculated vertical integration Strategy by Lion Group. By bringing engine and APU maintenance in-house, the operator can better control maintenance costs and mitigate Supply-Chain bottlenecks that have constrained the global MRO sector in recent years. Furthermore, positioning the facility in Batam allows Indonesia to compete directly with established MRO hubs in neighboring Singapore and Malaysia. If the facility can secure third-party contracts as intended, it will mark a significant maturation of Indonesia’s domestic aviation technical capabilities and workforce.
Sources: Lion Air Public Relations
Photo Credit: Batam Aero Engine
MRO & Manufacturing
2026 GA Parts Survey: Supply Chain Pressures on Aging Fleet
TBX survey finds 66% of GA maintenance pros expect parts availability to worsen as the piston fleet averages 53 years old.

General aviation maintenance professionals are spending more time hunting for parts and technical data than managing costs, as supply chain friction threatens the operational viability of an aging piston aircraft fleet.
In a press release issued on August 23, 2026, TBX, operating as Airworthy.com, published the findings of its 2026 General Aviation Parts Survey. The accompanying summary report, titled “The Great Parts Squeeze,” details the mounting pressures on maintenance shops tasked with servicing a certified general aviation (GA) piston fleet that now averages 53 years of age.
Supply chain friction and industry sentiment
The survey data indicates widespread pessimism regarding the near-term outlook for component availability. According to the report, 66% of surveyed industry professionals expect the aviation parts supply environment to worsen in the near future. Dissatisfaction is prevalent across multiple metrics, with 72% of respondents reporting frustration with parts pricing and 59% expressing dissatisfaction with current lead times.
Despite the high concern over pricing, the report highlights that the sheer time required to source components and access Illustrated Parts Catalogs (IPCs) has become the primary operational bottleneck for maintenance providers.
“Maintenance shops are spending too much time searching for parts, finding part numbers, waiting on backorders, and sourcing alternatives,” said Jon McLaughlin, CEO of TBX.
McLaughlin added that this administrative burden includes the time spent explaining limited options, or the complete lack thereof, to customers waiting for their aircraft to return to service.
Strategies for an aging piston fleet
With the average certified GA piston aircraft now over half a century old, the industry faces compounding challenges in keeping legacy airframes airworthy. The TBX report suggests that maintaining this fleet will require broader acceptance and availability of alternative components, including Parts Manufacturer Approval (PMA) items and serviceable used parts, alongside traditional Original Equipment Manufacturer (OEMs) supplies.
“As the GA fleet continues to age, improving parts availability, expanding access to technical data, and giving maintainers more options will be critical to keeping these aircraft flying,” McLaughlin stated in the release.
The company intends for the survey data to serve as a baseline for manufacturers and suppliers to address these bottlenecks. McLaughlin noted that the friction points identified by maintenance professionals require a coordinated response, stating that the issue cannot be solved by any single segment of the industry alone.
AirPro News analysis
The findings in the TBX report quantify a reality we hear frequently from general aviation maintenance providers. As the legacy piston fleet ages past the 50-year mark, the original supply-chains that supported these aircraft have often consolidated, pivoted to turbine markets, or ceased operations entirely. The high dissatisfaction with lead times points to a structural gap in the market. While PMA manufacturers have stepped in to produce high-demand replacement parts, the long tail of low-volume, specialized components remains a significant vulnerability for GA operators. If supply chain friction continues to outpace solutions, we may see an increase in aircraft grounded not for lack of funds, but for lack of basic hardware and approved technical data.
Sources: TBX via PR Newswire
Photo Credit: Stock Image
MRO & Manufacturing
Pem-Air Selects Ramco Aviation Software for Engine MRO Growth
Pem-Air adopts Ramco Aviation Software to manage GE90, Trent 700, and CFM LEAP engine MRO operations with AI-driven workflows.

Florida-based engine maintenance provider Pem-Air has selected Ramco Aviation Software to manage its expanding maintenance, repair, and overhaul (MRO) operations. The transition to the digital platform, announced on August 19, 2026, is designed to support the company’s growth into larger and next-generation engine platforms, including the GE90, Trent 700, and CFM LEAP.
In a press release issued by Ramco Systems, the software provider detailed that the integration will connect every stage of a shop visit into a single system. The move aims to reduce turnaround times and facilitate paperless operations for Pem-Air, which holds certifications from both the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA).
AI integration and technical workflows
The Ramco platform incorporates artificial intelligence capabilities intended to streamline technical workflows on the shop floor. A key feature is the Service Bulletin Agent, which extracts data from unstructured technical documents, such as Service Bulletins (SB) and Airworthiness Directives (AD), to automatically generate Engineering Orders (EO).
The software also utilizes generative AI assistants to review reports and monitor real-time operational status. To assist technicians, the system recommends corrective actions for maintenance discrepancies based on historical resolution data. Ramco states this feature is designed to help standardize decision-making and resolve mechanical issues more efficiently.
Supporting engine portfolio expansion
Pem-Air has been actively growing its engine portfolio to include larger widebody powerplants and next-generation narrowbody engines. The adoption of Ramco’s Software is positioned as a technological foundation to manage the increased complexity associated with these newer platforms.
“As we scale our engine MRO capabilities, we needed a platform that could keep pace with that growth. Ramco stood out in our evaluation for its end-to-end lifecycle coverage, deep engine MRO expertise, and strong credibility in the U.S. market. We built our name on quality and reliability, and we are confident that Ramco Aviation Software will enable us to continue exceeding what our customers expect from every repair.”
The quote was provided by Virgil Pizer, Chief Executive Officer of Pem-Air. Manoj Kumar Singh, Chief Customer Officer for Aviation, Aerospace & Defense at Ramco Systems, noted that the software was built to meet evolving segment demands, with AI positioned at the center of efforts to reduce customer turnaround times.
AirPro News analysis
We observe that the transition to integrated, AI-supported software platforms is becoming a baseline requirement for independent MRO providers scaling up to handle next-generation engines like the CFM LEAP. As engine complexity increases and technical documentation grows more voluminous, the ability to automate the translation of Airworthiness Directives into actionable Engineering Orders provides a distinct competitive advantage. For facilities like Pem-Air, reducing administrative overhead during shop visits is critical to maintaining throughput and minimizing turnaround times in a highly constrained global engine maintenance market.
Sources: Ramco Systems
Photo Credit: Ramco Systems
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