UPS is exploring AI to identify alternative aircraft parts and improve supply chain processes amid maintenance challenges in the aviation industry.
Lauren Purcell, aircraft engineering manager at UPS, discussed the initiative at IFS Unleashed 2026, where representatives from Southwest Airlines and Japan Airlines also outlined their approaches to AI in aircraft maintenance.
According to Constellation Research , the discussions covered parts sourcing, maintenance troubleshooting, and technician training, along with the challenges of using operational data to support AI applications.
Purcell said finding alternative aircraft parts has been a focus for UPS over the past year, with the company looking at how AI can support the process.
“Anything we can do to have other supply chain sources is advantageous,” Purcell said, according to Constellation Research. “Alternative parts has been a big focus for the last year.”
The global aviation maintenance, repair, and overhaul (MRO) market exceeded US$136 billion in 2025, an 8% increase from the previous year, according to Oliver Wyman’s 2026 MRO survey . The firm attributed the increase to aging aircraft fleets requiring additional maintenance and reliability challenges affecting newer aircraft.
The survey also found that material cost inflation exceeded expectations by 100 to 200 basis points across different maintenance segments in 2025. Oliver Wyman identified parts shortages, geopolitical instability, and increased spare parts inventories among the contributing factors.
About 90% of respondents reported experiencing tariff-related impacts, particularly on component purchases, repairs, and engine overhauls. The survey involved more than 150 aviation professionals, including representatives from airlines, maintenance providers, and aircraft manufacturers.
Sourcing alternative aircraft components also involves regulatory requirements. In the United States, the Federal Aviation Administration (FAA) issues Parts Manufacturer Approval (PMA), which allows manufacturers to produce approved replacement or modification parts for installation on specified aircraft, engines, and propellers.
The FAA maintains records identifying approved PMA components and the aircraft models on which they can be installed. Aircraft leasing agreements can also restrict their use, with some lessors requiring operators to replace PMA parts before returning leased aircraft, according to IFS’s December 2025 aviation outlook.
UPS has not specified whether its AI initiative involves identifying PMA components or other types of alternative parts. The company has also not disclosed the AI systems involved, their deployment status, or any measurable results.
Beyond parts sourcing, Purcell also discussed workforce shortages affecting aircraft maintenance. Experienced technicians are retiring, leaving operators with the challenge of training replacements while retaining technical knowledge.
UPS is exploring how AI can help train younger employees more quickly. Purcell said the company is working to improve its training processes through automation as experienced technicians leave the industry.
Oliver Wyman’s 2026 MRO survey found that approximately two-thirds of respondents considered recruiting aircraft technicians and mechanics moderately to very challenging. Labour rate inflation remained above pre-pandemic levels, settling at approximately 5.5% to 6% across most maintenance categories, compared with around 3% before the pandemic, according to Oliver Wyman.
Southwest Airlines is also examining AI applications for maintenance troubleshooting. DJ Rounsoville, managing director of strategy and digital solutions at Southwest Airlines, said the industry faces an experience shortage as senior technicians retire.
“New mechanics may need up to two years to become fully efficient at troubleshooting,” Rounsoville said, according to Constellation Research.
The panelists discussed how AI assistants could help technicians retrieve maintenance documentation and access technical knowledge accumulated by experienced employees. According to Constellation Research, the aim is to improve troubleshooting and reduce maintenance work carried over to subsequent shifts.
In its December 2025 aviation outlook, IFS described potential AI troubleshooting assistants that could retrieve maintenance manuals, service bulletins, and previous repair records. These applications could also identify recurring faults and provide information about earlier repair attempts, although IFS presented them as potential uses rather than confirmed deployments by UPS or Southwest Airlines.
Rounsoville also emphasised the need to consider workforce requirements alongside aircraft maintenance planning. She said optimising one part of the system without accounting for the other could create operational challenges.
Japan Airlines is taking a similar approach to improving maintenance decision-making. Sugimoto Kei, vice president of IT and digital promotion at Japan Airlines, said the company is focusing on giving employees better access to information to support faster, more informed decisions.
Access to reliable operational data remains a challenge for aviation companies looking to expand AI applications. Oliver Wyman’s 2026 MRO survey found that 58% of respondents said their companies were still at the experimental stage of AI development, unchanged from the previous year’s survey.
Approximately two-thirds reported that their AI initiatives were delivering value that met or exceeded expectations. However, Oliver Wyman identified poor data quality and limited data availability as challenges preventing organisations from moving beyond proof-of-concept projects.
Aircraft maintenance systems contain service histories, component records, and previous repair information. These records can support AI applications designed to identify recurring faults, retrieve troubleshooting information, and assess maintenance requirements.
Japan Airlines is working to improve access to such information. According to Constellation Research, Kei said the airline’s operational data is spread across different systems and is not always available in enterprise datasets, prompting the company to improve its data infrastructure.
In June 2025, Japan Airlines initiated a project to implement IFS Cloud for Aviation Maintenance, with plans to replace an aircraft maintenance management system that had been operating for more than 15 years, according to an IFS announcement .
The planned platform combines aircraft, engine, and component maintenance management with spare parts inventory and supply chain operations. Japan Airlines also intends to move from its existing on-premises infrastructure to a cloud-based system.
According to IFS, the platform is designed to provide capabilities such as predictive maintenance, real-time analytics, and workflow automation. The company did not confirm whether Japan Airlines had deployed these capabilities.
Kei also identified supply chain disruptions as a challenge for aircraft maintenance. Japan Airlines is examining how improved data availability and AI can support preventive maintenance and maintenance planning.
Purcell also emphasised the need for established processes to maintain reliable operational data.
“You can’t have data integrity if you don’t have processes to actually use that data,” Purcell said, according to Constellation Research.
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