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Time of India
18 hours ago
- Business
- Time of India
Airlines set to record higher profits of $36 billion in 2025, says IATA, ET Infra
Efficiency, fuel and demand trends Advt Fleet constraints and geopolitical risk Advt By , ETInfra Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. The global airline industry is projected to earn net profits of $36 billion, up from $32.4 billion in 2024, the International Air Transport Association said in its latest financial outlook for per the report, net profit margins are expected at 3.7 per cent, up from 3.4 per cent in 2024, while return on invested capital is projected at 6.7 per cent, marginally above 2024 traveller numbers are expected to reach 4.99 billion in 2025, and air cargo volumes 69 million tonnes, the report noted. These are higher than 2024 levels but lower than previous Walsh, IATA 's Director General, said, 'The first half of 2025 has brought uncertainties to markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections. The biggest positive driver is the price of jet fuel which has fallen 13 per cent compared with 2024. That's still about half the average profitability across all industries. But considering the headwinds, it's a strong result that demonstrates the resilience that airlines have worked hard to fortify.'IATA noted that passenger load factors are expected to reach 84 per cent in 2025. Passenger revenues are projected to be $693 billion, supported by ancillary revenues of $144 billion. Passenger growth, measured in Revenue Passenger Kilometres, is expected at 5.8 per cent. Passenger yields are forecast to fall by 4 per cent. The real average return airfare in 2025 is expected to be $ data in April 2025 showed 40 per cent of respondents planned to travel more, while 47 per cent expected to spend more on travel in the next 12 months. Some 68 per cent of business travellers said trade tensions would not impact their travel revenues are forecast to fall to $142 billion, with cargo growth slowing to 0.7 per cent and cargo yields expected to fall by 5.2 per cent. Trade policies are cited as a key costs are projected at $86 per barrel, leading to a fuel bill of $236 billion. Sustainable Aviation Fuel (SAF) production is forecast to double to 2 million tonnes, though still representing 0.7 per cent of total airline fuel use. SAF costs remain higher than traditional jet criticised fuel suppliers, stating, 'Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.'The Carbon Offsetting and Reduction Scheme for International Aviation ( CORSIA ) is expected to cost airlines $1 billion in 2025. Only Guyana has issued eligible credits under the expansion continues to face constraints. The aircraft backlog has exceeded 17,000 units, with the average fleet age now at 15 years. Aircraft deliveries in 2025 are expected at 1,692 units, down from previous commented, 'Manufacturers continue to let their airline customers down. Every airline is frustrated that these problems have persisted for so long.'
Time of India
2 days ago
- Business
- Time of India
Fleet owners jittery as FinMin favours ₹100 crore value-based criteria for infra status to ships, ET Infra
Advt Advt By , ETInfra MUMBAI: The Ministry of Finance is pushing ahead with a value-based - vessels costing ₹100 crore and above - criteria for granting infrastructure status to ships, to implement a Union Budget announcement, a move that will exclude small ship owners or as much as 80 per cent of the Indian fleet from its scope and potentially be challenged in courts, multiple sources Ministry of Ports , Shipping and Waterways had endorsed that ships of 24 metres and above by length or 500 gross tonnage (GT) and above by capacity should be accorded infrastructure status to help fleet owners access long-term, low-cost years of lobbying by the local shipping industry due to challenges associated with securing long-term, low-cost funds, Finance Minister Nirmala Sitharaman announced in her Budget speech to Parliament on February 1 that 'large ships above a specified size will be included in the infrastructure harmonised master list'.The shipping industry is miffed at the Finance Ministry 's stand on setting value-based criteria for granting infrastructure status to ships.'The government is supporting micro, small and medium enterprises (MSME's) from every side and here the Finance Ministry is advocating ₹100 crore and above as the eligibility criteria because the Finance Minister used the words 'large ships' in the Budget speech. If this sails through, then 80 per cent of our industry, which is less than ₹100 crore, will be left out of the infrastructure status,' said a ship owner.'The ₹100 crore value-based threshold will exclude the whole offshore fleet, ship owners mostly bring in second hand vessels which are less than ₹100 crore and the entire coastal shipping industry where you want to connect the hinterland through inland waterways and move the cargo along the coast, every vessel is less than ₹100 crore,' the ship owner new policies like the green tug transition programme where the ministry is nudging fleet owners to move to green ships, most of the vessels are less than ₹100 crores.'So, who are you trying to deny? You are trying to deny the whole medium-scale ship owners who are mainly catering to coastal movement of cargo which is a focus area for the government,' the ship owner stated.'More importantly, there is no revenue loss to the government by setting 24 metres by length or 500 GT by capacity as eligibility criteria for infrastructure status to ships. It will allow the Reserve Bank of India to include the defined ships in its master list of infrastructure sectors to facilitate long-term, low-cost funds from banks. Then, why this value based ₹100 crore system. If you see the sectors covered under infrastructure in the harmonised master list, hardly one sector may have some value associated with it, most of the sectors in the list have some kind of objective qualifying criteria. For ships, it should be length and gross tonnage, which is internationally accepted. It's an objective criterion,' he substantiate this point, a second ship owner referred to the shipbuilding financial assistance given by the government wherein shipyards are entitled to receive funds for constructing normal ships having length of 24 metres and above for domestic use. For hybrid and green vessels, a lesser length is accepted under the shipbuilding financial assistance scheme to handhold adoption of new stipulating a length of 24 metres and above for funding the construction of normal ships for domestic use under the shipbuilding financial assistance scheme, the government seeks to ensure that such ships comply with international conventions on load lines, tonnage infrastructure status, the ministry has endorsed setting 24 metres and above by length or 500 GT and above by capacity, the latter criteria will also comply with the Safety Of Life At Sea (SOLAS) convention of the International Maritime Organisation (IMO), a treaty that sets minimum safety standards for merchant ships.'Quality will be maintained with these parameters. There are different types of vessels with different shapes. GT is a function of volumes, so with a lesser length also you can have a higher GT,' the second ship owner said.'Now, if you put ₹100 crore as the criteria, there will be a difference between the vessels of ₹100 crore and the vessels of 24 metres and above or 500 GT and above in the funding mechanism. In the Indian context, if the government is only looking at bigger vessels, then what about the smaller ship owners. Are you trying to create a difference between the big and the small ships for the funding mechanism and denying the benefits associated with infrastructure status to the whole medium-scale ship owners which is the largest chunk of the domestic industry,' the second ship owner adopting the 24 metres length criteria would exclude vessels such as small boats, launches, ferries, wooden boats, passenger boats etc from the ambit of infrastructure status. 'These ships which are small will still not get infrastructure status,' he the Finance Minister mentioning the words 'large ships' for infrastructure status in the Union Budget, most likely to garner some eyeballs, the Finance Ministry is yet to come to terms with the needs of the shipping industry.'Somebody in the finance ministry wanted some colour to the Budget speech and gave infrastructure status a 'large ships' spin. Now they want to define large ships with a value of ₹100 crore. You are looking to benefit the local shipping industry and there is no revenue loss for the government if the infrastructure status is based on 24 metres and above by length or 500 GT and above by capacity. So, what is the problem?' the second ship owner asked.
Time of India
4 days ago
- Business
- Time of India
Patna Airport: Modi Launches Major Airport Developments in Patna, Boosting Bihar's Connectivity, ET Infra
Advt Patna airport gets a modern terminal building! This is great news for Bihar's progress. Here are some glimpses from the new terminal. — Narendra Modi (@narendramodi) May 29, 2025 Passenger capacity and future plans Advt By , ETInfra Prime Minister Narendra Modi on Thursday inaugurated the new terminal building at Jay Prakash Narayan International Airport in Patna and laid the foundation stone for a civil enclave at Bihta airport, located on the outskirts of the to PTI, the terminal at Patna airport was developed at a cost of ₹1,200 crore, while the Bihta civil enclave project will require ₹1,410 crore, according to Prime Minister unveiled the projects at a function held at Patna airport during a two-day visit to the state ahead of the Lok Sabha Chief Minister Nitish Kumar, Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu, and Deputy Chief Ministers Samrat Choudhary and Vijay Kumar Sinha were present at the new terminal at Patna airport spans 65,150 square metres and is designed to handle 3,000 passengers during peak hours and up to 1 crore passengers annually. The building incorporates elements inspired by the regional landscape and Mithila art The upcoming terminal building at Bihta will cover 68,000 square metres. It is planned to accommodate 3,000 passengers during peak hours and up to 50 lakh passengers annually by 2047. The project also includes supporting infrastructure such as a multilevel car park and a service block, and will reflect historical architectural terminal will feature an insulated roofing system, LED lighting, and heat-resistant glazing to maintain indoor Minister Kumar said the projects will support the state's air connectivity and tourism sector, adding that they will contribute to economic growth and CM Choudhary described the event as a historic moment for Bihar. 'This terminal is a big step towards the development of Bihar. This will improve air travel facilities and help people travel faster. This project will give new economic strength not only to Bihar but to the entire eastern India,' he to a government statement, the infrastructure upgrades aim to support growing domestic travel and strengthen connectivity. The projects are expected to encourage investment in sectors such as education and healthcare, create jobs, and enhance the region's role in trade and commerce.'This initiative is in line with the nation's broader goals of economic diversification and regional development,' the statement said.
Time of India
22-05-2025
- Business
- Time of India
Modi in Rajasthan: PM inaugurates 103 Amrit Bharat Stations, launches ₹26,000 crore projects, ET Infra
Redevelopment in focus: 103 Amrit Bharat stations Advt Tomorrow, 22nd May is a landmark day for India's railway infrastructure. The Amrit Stations will boost comfort, connectivity and celebrate our glorious culture! — Narendra Modi (@narendramodi) May 21, 2025 Maharashtra: Matunga, Parel, Devlali, Chinchpokli Uttar Pradesh: Saharanpur Junction, Bijnor, Idgah Agra Junction Tamil Nadu: Srirangam, St. Thomas Mount, Tiruvannamalai Gujarat: Morbi, Okha, Mithapur Madhya Pradesh: Seoni, Orchha, Katni South. ₹26,000 crore infra push Suratgarh–Phalodi (336 km) Phulera–Degana (109 km) Udaipur–Himmatnagar (210 km) Phalodi–Jaisalmer (157 km) Samdari–Barmer (129 km) By , ETInfra In a major infrastructure push, Prime Minister Narendra Modi inaugurated 103 redeveloped railway stations across India under the Amrit Bharat Station Scheme and flagged off the new Bikaner–Mumbai express train from 103 revamped stations span 86 districts across 18 states and Union Territories, signalling a nationwide upgrade to Indian Railways. The redevelopment integrates modern infrastructure with regional architectural styles, while focusing on improved accessibility, amenities for persons with disabilities, and enhanced passenger the cultural and regional significance of the Amrit Bharat stations, Prime Minister Modi tweeted:The Amrit Bharat Station Scheme, positioned as a long-term vision for Indian Railways, emphasises not only modernisation but also sustainability, inclusivity, and a celebration of India's cultural the key stations being inaugurated:Alongside the station inaugurations, PM Modi also laid the foundation stone for multiple infrastructure projects totalling over ₹26,000 crore. A key focus is the ongoing electrification of rail lines—part of the effort to achieve 100 per cent electrification of the national rail sections inaugurated include:The foundation stone has also been laid for the Churu–Sadulpur rail line (58 km), further strengthening connectivity in western India.
Time of India
22-05-2025
- Business
- Time of India
IndiGo Airline Operations: Limited impact on operations due to closure of Pakistan airspace, says IndiGo CEO Elbers, ET Infra
Highlights Pieter Elbers said only 34 out of 2,200 daily flights were affected by Pakistan's airspace closure, with Almaty and Tashkent routes temporarily suspended. Impacted flights are seeing additional flying time of 20–30 minutes, primarily due to rerouting, leading to a marginal increase in fuel costs. Despite the disruption, IndiGo maintained over 2,050 daily flights with an average domestic load factor of 83% during the period. Advt By , ETInfra Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. NEW DELHI: The impact of closure of Pakistan's airspace to Indian airlines will have limited impact on the operations of India's largest airline IndiGo, according to the management of the airline's Chief Executive Officer Pieter Elbers in a post earnings conference call with analysts on Wednesday outlined that due to the closure of airspace, out of 131 destinations, two have been suspended--Almaty and Tashkent. Overall, 34 flights have been impacted for which rerouting has been undertaken.'So, we have 2,200 daily flights and there we have a total of 34 being affected within the range of 20 to 30 minutes of additional flying time, which, of course, there is an impact financially when it comes to bringing in additional fuel. But if you look at the overall scheme of things at IndiGo and the size of the operations, the impact for us is relatively limited,' he management highlighted that during the four-day limited skirmish between India and Pakistan between May 7 and 10, operations from 11 airports in the northern part of India were suspended for a period of eight days, leading to cancellation of around 170 daily flights.'Operationally, the impact was limited as we continue to operate more than 2,050 daily flights with strong domestic load factors of around 83 per cent on the remainder of the network during that very same period,' said Pakistan government closed the country's airspace for all civilian and military operated flights from India. The step was undertaken after India undertook a series of measures, including diplomatic downgrade of its relations with Pakistan after militants belonging to The Resistance Front, a proxy of Pakistan-based terrorist group Lashkar-e-Taiba, killed 26 tourists in Pahalgam town of Anantnag district in Jammu & Kashmir on April 22.
