Global airlines have raised their profit forecast for 2025, projecting industry revenues to surpass $1 trillion for the first time, with a record 5.2 billion passengers expected worldwide, despite ongoing supply chain issues.
Challenges from major aircraft manufacturers Boeing and Airbus have hindered growth, leading to delays in jet deliveries. Airlines have expressed that without newer, more efficient aircraft, they struggle to reduce jet fuel costs while accommodating more passengers.
The International Air Transport Association (IATA) forecasts a net profit of $36.6 billion for the airline industry this year, an increase from the projected $31.5 billion in 2024. “These efforts will help mitigate several profitability pressures outside of airlines’ control, including persistent supply chain challenges and a rising tax burden,” said IATA Director General Willie Walsh.
This optimistic outlook follows a tumultuous period, as the industry suffered a staggering $140 billion loss in 2020 due to the pandemic, but has since rebounded thanks to strong travel demand. Additionally, declining jet fuel prices are expected to provide some relief to airlines.
However, IATA cautioned that uncertainties stemming from global conflicts in the Middle East and Ukraine, along with the upcoming U.S. presidential administration, could pose risks to the sector’s stability.
Passenger yields, or the average fare paid by travelers per mile, are projected to decrease by 3.4% compared to 2024.
