International Air Transport Association has lowered global airlines’ net profit forecast to $ 36 billion in 2025 on the back of significant uncertainties in global markets.
The projected net profit however will be 11 per cent higher than 2024 with strong revenue growth and lower fuel prices. In December 2024 IATA had estimated $ 36.6 billion net profit for global airlines in 2025.
“The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures including net profits it will be slightly better year for airlines than 2024, although slightly below our projections. The biggest positive driver is the price of jet fuel which has fallen 13 per cent compared with 2024 and 1 per cent below previous estimates, “ IATA’s director general Willie Walsh said at the association’s annual general meeting in Delhi on Monday.
Airlines are expected to register a record $ 979 billion in revenue in 2025 which is 1.3 per cent higher than previous year but lower than previously forecasted $ 1 trillion. While North American airlines are expected to deliver the most to profitability, Asia Pacific region will contribute highest passenger demand.
Walsh warned that supply chain issues pose significant challenges to airlines with backlogs of undelivered aircraft exceeding 17,000. Further threats of tariff and trade tensions pose additional risks for airlines.
“Should states exit from a multilateral agreement exempting aircraft from tariffs, supply chain constraints and production limitations could further get aggravated,” Walsh cautioned.