The International Air Transport Association (IATA) has adjusted its 2025 profit forecast for global airlines to $36.0 billion, down from the previous estimate of $36.6 billion. This revision is attributed to escalating trade tensions, declining consumer confidence, and ongoing aircraft delivery delays.
Despite an increase from the $32.4 billion profit recorded in 2024, the industry faces challenges such as U.S. tariffs under President Donald Trump, which are dampening economic growth and discretionary spending, particularly in the U.S. These tariffs and supply chain issues are causing delivery delays in new aircraft, affecting operations and increasing maintenance costs.
Total revenues are expected to grow by 1.3% to $979 billion, falling short of the $1 trillion milestone previously anticipated. Meanwhile, total industry expenses are forecasted to reach $913 billion, aided by lower fuel prices. Cargo revenues are projected to decline 4.7% to $142 billion due to reduced global trade.
IATA’s Director General Willie Walsh criticized manufacturers for potential cost pass-through to airlines, warning that increased tariffs and expenses could ultimately burden consumers with higher fares.
Source: Reuters
