Global Airline Profits Climb in 2025 Despite Persistent Challenges
(MENAFN) The International Air Transport Association (IATA) announced on Monday that global airline profits are poised to reach $36 billion in 2025, representing an 11.1% increase from the previous year, despite persistent challenges such as geopolitical tensions, trade disputes, and economic uncertainty.
IATA’s recently published Global Outlook for Air Transport projects that total airline revenues will break records, hitting $979 billion next year, while operating costs are expected to total $913 billion. The industry’s net profit margin is predicted to climb to 3.7%, up from 3.4% in 2024.
Passenger numbers are set to surge to an unprecedented 4.99 billion travelers in 2025, marking a 4% rise compared to 2024. Air cargo shipments are also forecast to grow moderately, increasing by 0.6% year-over-year to reach 69 million tons.
Nevertheless, the report highlights ongoing threats to the sector’s stability, including the ongoing Russia-Ukraine conflict, intensifying trade frictions, political disunity, and fluctuating oil prices. It further cautions that potential alterations to U.S. trade policy under the Trump administration may delay critical corporate decisions, thereby reducing demand for air freight and business travel.
Willie Walsh, IATA’s director general, recognized the hurdles facing airlines but pointed to encouraging trends for the upcoming year.
“The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures, including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections.”
"The biggest positive driver is the price of jet fuel, which has fallen 13% compared with 2024 and 1% below previous estimates. Moreover, we anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence," he stated.
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