Expeditors (EXPD) Status update summary

Market trends and demand outlook

• Aviation and aerospace sectors are experiencing strong, sustained demand, with global fleet size expected to nearly double over the next 20 years, driven by GDP growth in emerging markets like India and China.

• Both commercial and military aviation segments are expanding, with significant growth in single-aisle aircraft and continued demand for piloted military systems.

• General aviation is also growing, including new segments like electric vertical takeoff and landing aircraft.

Supply chain challenges and backlogs

• Aircraft manufacturing faces severe capacity constraints, with backlogs for Airbus and Boeing exceeding 16,000 aircraft combined as of May 2026.

• The average age of the global fleet is at a historic high, leading to increased maintenance, repair, and overhaul (MRO) demand and parts shortages.

• Engine MRO is a critical bottleneck, with global spend projected to reach $100 billion and grow 5% annually over the next decade.

Industry adaptation and logistics solutions

• Speed and agility in quoting, routing, and delivery are now essential, with logistics providers investing in centralized operations and specialized training.

• Critical Logistics Services (CLS) programs require regional hubs, 24/7 staffed desks, and specialized teams to manage urgent shipments and ensure proactive communication.

• Strict KPIs, rapid quoting, and escalation protocols are vital for minimizing delays and maintaining high service levels.