Tourexpi
IATA Forecasts $36 Billion in Airline Profits for 2025 Amid Global Uncertainties
In
its newly released Global Outlook for Air Transport, IATA projects total
airline revenues to hit a record $979 billion, with industry expenses forecast
at $913 billion. The net profit margin is set to improve to 3.7%, up from 3.4%
in 2024.
Passenger
demand is expected to reach a historic peak, with nearly 5 billion travelers
projected to fly in 2025 – a 4% year-on-year increase. Air cargo volumes are
also set to edge up by 0.6% to 69 million tons.
While
the outlook is broadly positive, IATA highlighted several risks that continue
to impact the sector, including the war in Ukraine, intensifying trade
disputes, political fragmentation, and uncertainty over U.S. trade policy
developments. These factors, the report notes, could weigh on business travel
and air freight demand.
Jet
fuel prices have emerged as a key bright spot, falling by 13% compared to 2024
and 1% below earlier forecasts, providing financial relief for carriers.
Despite
challenges, IATA remains cautiously optimistic. The report underscores that by
most measures – including profitability and traffic growth – 2025 is expected
to outperform 2024, albeit falling short of previous projections.
Image
Credit: © AA
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