IATA Projects Global Airline Revenues To Surpass Trillion Dollars In 2025 With Strong Middle East Profitability

Next year, global air passenger numbers are projected to surpass five billion for the first time, with industry revenues exceeding a trillion dollars, according to the International Air Transport Association (IATA). "Passenger numbers are expected to reach 5.2 billion in 2025, a 6.7 percent rise compared to 2024 and the first time that the number of passengers has exceeded the five billion mark," IATA stated.

All regions are anticipated to show better financial performance in 2025 compared to 2024, with a collective net profit expected in both years. "Profitability, however, varies widely by carrier and by region. For example, the collective net profit margin of African airlines is expected to be the weakest at 0.9% while carriers in the Middle East are most likely to be the strongest at 8.2%," said the statement.

Total industry revenues are forecasted at $1.007 trillion, aided by decreasing oil and fuel prices. This marks "the first time that industry revenues top the $1 trillion mark," it added. The aviation body's Director General Willie Walsh mentioned that IATA anticipates profits of $36.6 billion despite ongoing challenges such as supply chain issues and rising taxes.

Marie Owens Thomsen, IATA's chief economist, expressed optimism about this financial performance during a news conference in Geneva. She remarked that it was worth celebrating after a strong recovery from the pandemic's impact on aviation.

Walsh expressed frustration over delays from aircraft and engine suppliers, accusing them of not fulfilling their commitments. Despite these challenges, he remains optimistic about overcoming infrastructure deficiencies and regulatory burdens.

The statement also highlighted that airlines received 1,254 new aeroplanes in 2024. This delivery is part of efforts to meet growing demand and improve operational efficiency across various regions.

The aviation sector is poised for significant growth with increasing passenger numbers and revenue projections. However, regional profitability disparities and supply chain issues remain areas of concern for industry stakeholders.

With inputs from WAM