Global airline revenue will exceed $1 trillion by 2025, with record passenger numbers reaching 5.2 billion, the International Air Transport Association (IATA) said yesterday. The figure marks a strong recovery from the $140 billion loss in 2020 due to the pandemic.
Net profits are expected to rise to $36.6 billion in 2025, up from $31.5 billion in 2024.
However, growth faces hurdles due to delays in aircraft deliveries by Boeing, Airbus, and their suppliers. These delays, attributed to supply chain issues and production challenges, have forced airlines to operate older, less fuel-efficient planes, increasing costs.
IATA chief Willie Walsh criticized suppliers for acting as “quasi-monopolies” and profiting from supply chain disruptions.
Falling jet fuel prices provide some relief, but environmental concerns grow as airlines add flights to meet demand. Critics argue that increased flights negate efficiency gains, worsening emissions.
Meanwhile, geopolitical uncertainties in the Middle East and Ukraine could impact trade and travel confidence, posing risks to sustained growth.