Global Airline Profits Expected To Be $36 Billion In 2025, Says IATA

New Delhi | June 2: The global airline industry is expected to post a net profit of USD 36 billion in 2025, up from USD 32.4 billion last year, according to International Air Transport Association (IATA).  IATA’s Annual General Meeting (AGM) and World Air Transport Summit, is being held in India for the first time in 42 years.

Airline Industry Profitability Rose Gradually

IATA Director General Willie Walsh noted that while the profit is motivating, they are modest when measured per passenger. “A USD 36 billion profit equates to only USD 7.20 per passenger per segment. That’s a thin margin and highly vulnerable to external shocks,” Walsh said. He also cautioned against new taxes, rising airport charges, and regulatory burdens that could undermine industry resilience.

The industry’s revenues are expected to hit a record USD 979 billion in 2025, a 1.3% increase over 2024 levels.

Supply Chain Concerns and Aircraft Backlog

Walsh highlighted that there are numerous concerns related to the current supply chain, as there is a production backlog of 17,000 aircraft. Additionally, 1,100 planes under 10 years of age remain in storage, while fleet replacement rates are at just 3%. These problems can result in delaying modernisation and expansion plans across global airlines.

Airspace Must Stay Clear of Trade Conflicts

Walsh delivered a strong message to global policymakers, urging governments to keep airspace free from the dynamics of trade wars. He emphasised the critical importance of neutral, accessible airspace for global connectivity and economic growth.

India’s Aviation Sector Makes Its Mark

The event focused on India’s expanding position in the aviation ecosystem. IATA reports that the Indian aviation industry directly employs 3,69,700 people and generates USD 5.6 billion in GDP for the nation. When indirect, induced, and tourism-related activities are taken into consideration, the industry supports 7.7 million jobs and generates USD 53.6 billion, accounting for 1.5% of India’s GDP.

Global Aviation Leaders Convene in Delhi

Approximately 1,700 attendees, including leading airline executives and aviation professionals from around the world, have travelled to New Delhi for the AGM and World Air Transport Summit. After more than 40 years, India is hosting the esteemed industry conference, making this year’s event a historic occasion.

The IATA also announced that its next AGM will take place in Brazil in 2026.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. Every effort is made to ensure the accuracy, relevance, and timeliness of the information provided. However, inadvertent errors or omissions may occasionally occur.

Should you have any concerns, queries, or wish to point out any discrepancies in our content, please write to us at content@hdfcsec.com. Your feedback is valuable and helps us maintain the highest standards of content integrity.

Please note that the information shared is intended solely for informational purposes and should not be construed as investment advice. Users are advised to consult their financial advisors before making any investment decisions.