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The Hindu
4 hours ago
- Business
- The Hindu
Airlines projected to report $36 billion profit in 2025: IATA
Airlines' profit is expected to touch $36 billion, slightly higher than $32.4 billion posted last year, IATA said on Monday (June 2, 2025). Addressing the Annual General Meeting (AGM) of the International Air Transport Association (IATA) in the national capital, its Director General Willie Walsh asserted that airspace should be kept out of trade wars. The AGM is taking place in India after 42 years. Flagging concerns over supply chain issues, Mr. Walsh said there is a backlog of 17,000 aircraft and 1,100 planes under 10 years are in storage while the fleet replacement rate is 3%. In 2025, airlines globally are expected to report a profit of $36 billion, higher than $32.4 billion recorded in 2024, but slightly down compared to $36.6 billion projected in December 2024, as per IATA. Mr. Walsh said that $36 billion profit is significant but that equates to just $7.20 per passenger per segment. "It's still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test," he said. The airline industry's revenues are expected to reach a historic high of $979 billion in 2025, around 1.3% higher than the figure seen in 2024, according to IATA, which represents about 350 airlines comprising over 80% of the global air traffic. Around 1,700 participants are expected to attend the World Air Transport Summit, and the AGM. According to IATA, India's aviation industry directly employs 3,69,700 people and generates $5.6 billion of GDP. When indirect, induced and tourism impacts are included, the totals rise to 7.7 million jobs and $53.6 billion of GDP (1.5%). The next IATA AGM will be held in Brazil in 2026.
Economic Times
4 hours ago
- Business
- Economic Times
Airlines projected to report USD 36 billion profit in 2025: IATA
Airlines' profit is expected to touch USD 36 billion, slightly higher than USD 32.4 billion posted last year, IATA said on Monday. ADVERTISEMENT Addressing the Annual General Meeting (AGM) of the International Air Transport Association (IATA) in the national capital, its Director General Willie Walsh asserted that airspace should be kept out of trade wars. The AGM is taking place in India after 42 years. Flagging concerns over supply chain issues, Walsh said there is a backlog of 17,000 aircraft and 1,100 planes under 10 years are in storage while the fleet replacement rate is three per cent. In 2025, airlines globally are expected to report a profit of USD 36 billion, higher than USD 32.4 billion recorded in 2024, but slightly down compared to USD 36.6 billion projected in December 2024, as per IATA. Walsh said that USD 36 billion profit is significant but that equates to just USD 7.20 per passenger per segment. ADVERTISEMENT "It's still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test," he said. The airline industry's revenues are expected to reach a historic high of USD 979 billion in 2025, around 1.3 per cent higher than the figure seen in 2024, according to IATA, which represents about 350 airlines comprising over 80 per cent of the global air traffic. ADVERTISEMENT Around 1,700 participants are expected to attend the World Air Transport Summit, and the AGM. According to IATA, India's aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of GDP. ADVERTISEMENT When indirect, induced and tourism impacts are included, the totals rise to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent). The next IATA AGM will be held in Brazil in 2026. (You can now subscribe to our Economic Times WhatsApp channel)
CNBC
4 hours ago
- Business
- CNBC
The global economy faces many headwinds, but the aviation industry is expected to defy them
The global economy may be facing an uncertain 2025 in light of trade tensions and geopolitical conflicts, but there's a bright spot that investors can take solace in: aviation. The profitability of the aviation industry is expected to improve in 2025, despite global gross domestic product growth being forecast to drop to 2.5% in 2025 from 3.3% in 2024, according to the International Air Transport Association. In a report released on Monday, the IATA said revenue, operating profits and net profits of the industry are expected to increase from 2024, although some of those were lower than projections made in December. For example, net profits for the industry are projected at $36 billion for 2025, up from the $32.4 billion earned in 2024, but slightly lower than the December projection of $36.6 billion. The aviation industry's net profit margin is also forecast to rise to 3.7% in 2025, from 3.4% the previous year. Total revenues are projected to hit a record high of $979 billion, 1.3% higher than the previous year, but down from the $1 trillion in its last forecast. The IATA attributed the better results mainly to two factors: lower jet fuel costs and greater efficiency. It expects passenger load factors will reach an all-time high in 2025 with a full-year average of 84%, "as fleet expansion and modernization remains challenging amid supply chain failures in the aerospace sector." PLF shows how efficiently an airline is filling its seats. Jet fuel costs are expected to average $86 per barrel in 2025, down from $99 in 2024, the IATA noted, saying it will translate into a total fuel bill of $236 billion, $25 billion lower than the $261 billion incurred in 2024. "Recent financial data show minimal fuel hedging activity over the past year, indicating that airlines will generally benefit from the reduced fuel cost. It is not expected that fuel will be impacted by trade tensions," IATA said. Airline CEOs told CNBC that airlines are holding up despite the uncertainty. Air India CEO Campbell Wilson told CNBC's Monica Pitrelli at the World Air Transport Summit over the weekend that 2025 has been "a year of surprises" for the airline, "whether it's politics, tariffs, geopolitics, [or] closer to home, some conflict issues."India and Pakistan recently closed their airspace to each other's aircraft after military strikes carried out by both sides in May. Pakistan planes are banned from Indian airspace till June 23, and Indian planes are barred from Pakistan till June 24. "Uncertainty is not helpful for business, but the underlying fundamentals of this market ... and the upside we see ahead of Air India is driving us forward, because we think there's massive opportunity to be realized," Wilson added. He said India is the third-largest air travel market in the world, and estimated that it's growing at an annual growth rate of 8% to 10%. "So if Indians start traveling... at the intensity of China, it's going to absolutely explode in volume internationally," he said. Adrian Neuhauser, president and CEO of Colombian flag carrier Avianca, said in an interview Sunday "When the world sneezes in any way ... Airlines just get sick very quickly."However, he said, Avianca's passenger load factors are still holding up and revenue has improved. "So the concern is there, but as of today, we're still seeing the numbers be there." North America is expected to generate the highest absolute profit among all regions in 2025, and the Asia-Pacific region is set to see the largest demand growth in 2025, with revenue per passenger kilometer projected to grow 9% year on year, the IATA said. Revenue passenger kilometers, or RPK, is a measure of the volume of passengers carried by an airline. The metric is used to assess airline performance and passenger demand. The IATA said that "if an airline sees a consistent increase in RPKs on a particular route over several months, this might prompt the carrier to increase flight frequency or deploy larger aircraft to meet growing demand — potentially boosting revenue and market share." It attributed strong passenger demand in the Asia-Pacific to the relaxation of visa requirements in several Asian countries, especially China, Vietnam, Malaysia and IATA did note, however, that the economic landscape poses some challenges, with the GDP forecast for the region, particularly China, having been lowered.
Time of India
5 hours ago
- Business
- Time of India
Airlines projected to report USD 36 billion profit in 2025: IATA
Global airlines are set to soar with profits reaching 36 billion USD next year. The International Air Transport Association, IATA, held its annual meeting in New Delhi after 42 years. Supply chain issues and aircraft backlogs were key concerns. India's aviation sector supports millions of jobs and contributes significantly to the GDP. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Airlines' profit is expected to touch USD 36 billion, slightly higher than USD 32.4 billion posted last year, IATA said on the Annual General Meeting (AGM) of the International Air Transport Association (IATA) in the national capital, its Director General Willie Walsh asserted that airspace should be kept out of trade AGM is taking place in India after 42 concerns over supply chain issues, Walsh said there is a backlog of 17,000 aircraft and 1,100 planes under 10 years are in storage while the fleet replacement rate is three per 2025, airlines globally are expected to report a profit of USD 36 billion, higher than USD 32.4 billion recorded in 2024, but slightly down compared to USD 36.6 billion projected in December 2024, as per said that USD 36 billion profit is significant but that equates to just USD 7.20 per passenger per segment."It's still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test," he airline industry 's revenues are expected to reach a historic high of USD 979 billion in 2025, around 1.3 per cent higher than the figure seen in 2024, according to IATA, which represents about 350 airlines comprising over 80 per cent of the global air 1,700 participants are expected to attend the World Air Transport Summit, and the to IATA, India's aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of indirect, induced and tourism impacts are included, the totals rise to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent).The next IATA AGM will be held in Brazil in 2026.
Mint
5 hours ago
- Business
- Mint
Airlines projected to report USD 36 billion profit in 2025: IATA
New Delhi, Jun 2 (PTI) Airlines' profit is expected to touch USD 36 billion, slightly higher than USD 32.4 billion posted last year, IATA said on Monday. Addressing the Annual General Meeting (AGM) of the International Air Transport Association (IATA) in the national capital, its Director General Willie Walsh asserted that airspace should be kept out of trade wars. The AGM is taking place in India after 42 years. Flagging concerns over supply chain issues, Walsh said there is a backlog of 17,000 aircraft and 1,100 planes under 10 years are in storage while the fleet replacement rate is three per cent. In 2025, airlines globally are expected to report a profit of USD 36 billion, higher than USD 32.4 billion recorded in 2024, but slightly down compared to USD 36.6 billion projected in December 2024, as per IATA. Walsh said that USD 36 billion profit is significant but that equates to just USD 7.20 per passenger per segment. "It's still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test," he said. The airline industry's revenues are expected to reach a historic high of USD 979 billion in 2025, around 1.3 per cent higher than the figure seen in 2024, according to IATA, which represents about 350 airlines comprising over 80 per cent of the global air traffic. Around 1,700 participants are expected to attend the World Air Transport Summit, and the AGM. According to IATA, India's aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of GDP. When indirect, induced and tourism impacts are included, the totals rise to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent). The next IATA AGM will be held in Brazil in 2026.
