Global Airline Industry Expects Unprecedented Passenger Numbers by 2025 -

The global airline industry is anticipated to reach a net profit of $36.6 billion by 2025, driven by a record 5.2 billion passengers taking to the skies, according to the annual forecast from the sector’s leading advocacy organization.

This projection indicates a 16% rise compared to figures for 2024. The expected profit margins in the industry are forecasted to reach 3.6%, up from the 3.3% margins predicted for 2024, as reported by the International Air Transport Association (IATA) on Wednesday. This increase in profitability is linked to lower oil prices and a surge in demand; however, potential tariffs and trade conflicts from the incoming Trump administration could pose risks to the sector’s future, the organization warned.

IATA also forecasts that industry revenues will exceed $1 trillion for the first time in 2025.

Despite a strong recovery in demand following the pandemic, the aviation sector continues to grapple with narrow profit margins. Airlines are encountering difficulties due to supply chain disruptions, causing delays in the delivery of new, more fuel-efficient aircraft and extending maintenance times for existing planes.

In 2024, North America remained the leading contributor to global industry profits, although margins were lower than pre-pandemic levels due to slow aircraft deliveries and rising costs, especially among low-cost carriers, according to IATA. The Middle East reported the strongest financial performance and was the only region to see an increase in passenger yields, propelled by strong demand for premium long-haul service.

IATA warned that their outlook could be affected by the escalation of conflicts in Ukraine and the Middle East, or if oil prices do not fall as anticipated.

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