Airlines projected to report USD 36 billion profit in 2025: IATA

Airlines Expected to Achieve USD 36 Billion Profit in 2025: Insights from IATA

Airlines expected to achieve USD 36 billion profit in 2025 according to IATA

PTI Last Updated: Jun 03, 2025, 03:01:00 PM IST

Global airlines are poised for significant profits, reaching an estimated 36 billion USD in the upcoming year. The International Air Transport Association (IATA) recently convened its annual meeting in New Delhi after a span of 42 years. During this event, supply chain challenges and delays in aircraft deliveries emerged as crucial topics of discussion. The Indian aviation sector plays a vital role, providing millions of jobs and substantially contributing to the nation’s GDP.

Airlines’ profits are predicted to hit USD 36 billion, a slight increase from the USD 32.4 billion reported last year, as stated by IATA. During the Annual General Meeting (AGM) of the International Air Transport Association in the national capital, Director General Willie Walsh emphasized the importance of keeping airspace free from trade disputes.

The AGM marks the first return to India in 42 years.

Walsh highlighted challenges related to supply chain disruptions, noting a backlog of 17,000 aircraft with 1,100 planes under ten years old currently stored, while the fleet replacement rate is at three percent.

For 2025, IATA forecasts $36 billion in global airline profits, higher than the $32.4 billion recorded in 2024, yet slightly down from the $36.6 billion anticipated in December 2024.

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Walsh mentioned that while the projected profits of USD 36 billion are significant, they correspond to only USD 7.20 per passenger for each segment. “This is still a modest margin, and any new taxes, increases in airport or navigation fees, unexpected market changes, or costly regulations could swiftly challenge the industry’s resilience,” he explained. Furthermore, airline revenues are projected to reach a record high of USD 979 billion in 2025, which represents a 1.3 percent increase from 2024 figures, according to IATA, which encompasses roughly 350 airlines responsible for over 80 percent of global air traffic.

Approximately 1,700 participants are anticipated to attend both the World Air Transport Summit and the AGM.

IATA indicates that India’s aviation industry employs 369,700 individuals and generates USD 5.6 billion for the GDP.

Including indirect, induced, and tourism-related impacts, the total employment figures rise to 7.7 million jobs, producing an estimated USD 53.6 billion in GDP, accounting for 1.5 percent of the national total.

The next IATA AGM is scheduled to take place in Brazil in 2026.

(Originally published on Jun 02, 2025)