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Trade Tensions, Political Uncertainty Dim Air Travel Outlook; Record Traveller Forecast Trimmed
- The global airline industry’s main trade group held its annual meeting in New Delhi on June 2, 2025, where it shared revised forecasts for airline profits and passenger numbers.
- IATA attributed the revised outlook to trade tensions, economic and political uncertainties, and persistent supply chain issues affecting aircraft deliveries and growth.
- The association detailed a backlog of 17,000 undelivered aircraft, 1,100 planes in storage, and expected global airline revenues to reach a historic USD 979 billion in 2025.
- IATA forecasts that airlines will earn USD 36 billion in profits with a net margin of 3.7 percent, which corresponds to an average profit of approximately USD 7.20 for each passenger, as total traveler numbers are expected to reach 4.99 billion.
- Despite headwinds and a slower growth rate, IATA emphasized airline resilience, but warned that rising costs, regulations, and trade issues could challenge future profitability.
13 Articles
13 Articles
At the summit of the airlines in Delhi, one issue dominates: How the worldwide uncertainty caused by Trump's tariffs harms air traffic.
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The Straits Times
The Star Kuala LumpurTrade tensions, political uncertainty dim air travel outlook; record traveller forecast trimmed
Despite the headwinds, including persistent supply chain snags, airlines will still turn a greater profit, Iata says. Read more at straitstimes.com.
Global airlines lower 2025 forecast to $36 billion net profit
The International Air Transport Association (IATA) has updated its 2025 financial outlook for the airline industry. Compared to earlier predictions made at the end of 2024, the organisation is slightly more pessimistic due to the current trade tensions. 2025 has been an eventful year for the airline industry so far and as previously expected, aviation numbers have been affected by the current trade tensions. After multiple airlines had already s…
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