4 days ago
Airlines hit turbulence: IATA cuts 2025 outlook amid global headwinds
NEW DELHI, June 2 — Airlines on Monday revised down their traffic and profit forecasts for 2025, citing 'headwinds' for the global economy.
The International Air Transport Association (IATA) estimates fewer than five billion air journeys will take place this year, compared with the previously forecast 5.22 billion.
'The first half of 2025 has brought significant uncertainties to global markets,' Willie Walsh, IATA's Director General, told its annual general meeting in New Delhi.
But he added: 'Considering the headwinds, it's a strong result that demonstrates the resilience that airlines have worked hard to fortify.'
Cumulative airline profits will reach US$36 billion (RM153 billion) this year, US$600 million less than expected, IATA said.
Commercial aviation revenues are expected to remain below the US$1 trillion forecast in the previous December projections, with IATA now reporting US$979 billion.
Walsh, addressing IATA delegates, called for the aviation sector to be spared from increased tariffs — though he did not name US President Donald Trump, who launched a trade war in early April.
While looking at profits, Walsh warned that 'perspective is critical' to put industry-wide figures into context, saying that per passenger, it was still a narrow margin.
'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.
'Policymakers who rely on airlines as the core of a value chain that employs 86.5 million people and supports 3.9 percent of global economic activity, must keep this clearly in focus.'
The organisation also expects 69 million tonnes of cargo to be transported by air this year, down from the 72.5 million previously expected. — AFP
