IATA financial projects for 2025 predicts improvements in airline profitability for the year with net profits expected to reach $36.0bn, up from $32.4bn in 2024
Airlines anticipate total revenues will reach a record $979bn, reflecting a 1.3p increase from 2024 amid challenges in global economic conditions
Speaking at the IATA annual converges in Delhi, Willie Walsh, IATA’s Director General, discussed the uncertainty in global markets, noting improvements in net profit margins to 3.7pc, albeit below previous expectations.
Airlines are projected to transport nearly 4.99bn passengers in 2025, representing a 4pc increase from the previous year. The price of jet fuel is expected to average $86 per barrel in 2025, significantly impacting operational costs for airlines
IATA expects Europe to benefit from strong passenger demand, driven by growth in the low-cost sector. More of their aircraft fleet will return to service following engine-related grounding, and the EU’s open skies agreements with North Africa will provide market opportunities. A stronger Euro will boost profitability for all carriers in the region with costs (such as fuel) mainly denominated in US dollars.
Willie Walsh shared: “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. Perspective is critical to put into context such large industry-wide aggregate figures. Earning a $36 billion profit is significant. Manufacturers continue to let their airline customers down. Every airline is frustrated that these problems have persisted so long.
