The International Air Transport Association (IATA) has projected that global airline revenue will exceed trillion for the first time in 2025, marking a significant milestone for the aviation industry. According to IATA’s forecast, total airline revenue is expected to reach .007 trillion, reflecting a 4.4% increase compared to 2024. The association also predicts that net profits will climb to .6 billion, with a net profit margin of 3.6%, up 16% from the previous year. Operating profits are expected to reach .5 billion in 2025.
In addition to financial growth, IATA forecasts that the number of airline passengers will surpass 5 billion for the first time, reaching 5.2 billion by the end of 2025, which represents a 6.7% increase over 2024. IATA Director General Willie Walsh stated that this growth will not only benefit the aviation sector but also create and sustain jobs globally, further contributing to the global economy.
This positive outlook follows a period of turbulence for the industry. Just four years ago, the aviation sector faced a catastrophic loss of 0 billion in 2020 due to the Covid-19 pandemic. However, the industry has since rebounded strongly, driven by robust travel demand. The forecasted success in 2025 is also aided by a predicted decrease in jet fuel prices, which should help reduce operational costs.
Despite the anticipated strong results, Walsh highlighted ongoing challenges that airlines are facing, particularly difficulties in securing new aircraft. Planemakers Boeing and Airbus have been slow in delivering planes, hampering airlines’ ability to expand and improve their fuel efficiency. Walsh described the situation as “unacceptable” and criticized the aircraft suppliers for acting like “quasi-monopolies,” profiting from delays that are hindering airline growth. He emphasized that IATA will apply increased pressure on suppliers and may seek external support to ensure action is taken.
Source: Reuters