Despite problems with the global supply chain and a shortage of available aircraft to meet growing passenger demand, airlines around the world are expected to break records in terms of collective revenue. Indeed, with many carriers reporting significant profits and even revising their revenue outlooks, it does look like 2025 will likely bring in signifcant revenue for the industry.

Global airline revenue to touch $1 trillion

At the height of the COVID-19 pandemic, when it was feared that the airline industry would suffer the consequences for years, few could foresee a trillion-dollar collective revenue globally for the industry. But that’s exactly the forecast that industry experts are making.

The International Air Transport Association ( IATA
), which is an airline body that keeps a close eye on airline safety and efficiency standards around the world, recently predicted that carriers worldwide could bring in more than a trillion dollars in collective revenue in 2025.

Japan Airlines Airbus A350 & Boeing 767 In Taxiing Tokyo

Photo: Markus Mainka | Shutterstock

Indeed, this will be a significant milestone as the industry has never touched the trillion-dollar mark. For 2025, airlines are predicted to bring in revenue of $1.007 trillion, as opposed to $964 billion this year.

It’s also important to note that the revenue will also translate into a collective profit for the global airline industry of around $36.6 billion in 2025, up from $31.5 billion this year. These figures were recently made available by the International Air Transport Association’s chief, Willie Walsh, who thinks that the Trump administration will also help the airline industry.

According to a report by Reuters, Walsh said that Trump’s actions in the first term were favorable for the airline industry, something he hopes will repeat in his second term. The report quotes him as saying,

“The indication is that the second Trump administration is likely to reverse some of the actions that were taken under the (Joe) Biden administration.

“I would see the Trump administration as being a net positive for the industry,” he said, without giving details.”

A320 silhouette taking off

Photo: Sharkovski | Shutterstock

Issues persist

Walsh’s prediction about trillion-dollar revenue in 2025 is despite the long list of problems with the industry that continue to plague aerospace companies globally. One of them is the shortage of aircraft that has hampered the growth of many airlines.

The global supply chain for aircraft parts and engines was significantly disrupted during the pandemic and has not been able to bounce back sufficiently since. Plane makers such as Boeing
and Airbus
are sitting on huge orders and can’t keep up with the demand.

Row of almost finished Boeing 737 MAX aircraft in Renton, Washington shutterstock_1467931610

Photo: VDB Photos | Shutterstock

Boeing also faces additional problems with its production quality issues, and all of these problems together have resulted in many airlines having to curtail their network plans. Walsh told reporters in Geneva,

“We’ve given them time. I think our patience has run out. The situation is unacceptable.

“We’re going to have to ramp up the pressure and maybe look for support to force key suppliers to get their act together.”

Airlines reporting profits

The estimate that airlines could cross $1 trillion might have merit. Despite several problems, many major airlines have reported great profits in recent times. Etihad Airways increased its profit by 66% to AED1.4 billion ($368 million), with revenues growing 21% to AED18.4 billion ($5.0 billion) year-on-year. This was for the nine-month period this year.

Antonoaldo Neves, Etihad’s chief executive officer, said the growth was driven by strong results in passenger and cargo revenues, underscoring the effectiveness of their strategy and the strength of their growth trajectory.

Etihad Airbus A321

Photo: Felix Tchvertkin | Shutterstock

The Emirates Group also

posted a profit before tax of $2.8 billion
, an increase of 1% year-on-year (YoY). Its group-wide revenues were $19.3 billion, up 5% YoY, indicating a strong customer demand across its business divisions and regions where it operated.

Several major airlines in the United States have also revised their revenue outlooks for the near future, given the robust passenger demand during the holiday season, which is expected to bring in significant money for the carriers.

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