Airlines Expected to Achieve USD 36 Billion Profit in 2025: IATA
PTI Last Updated: Jun 03, 2025, 03:01:00 PM IST
Global airlines are projected to reach impressive profits of USD 36 billion in the upcoming year. The International Air Transport Association (IATA) recently convened its annual meeting in New Delhi after a 42-year hiatus. Key issues discussed included supply chain challenges and aircraft delivery delays. The aviation sector in India plays a vital role, supporting millions of jobs and making significant contributions to the national GDP.
According to IATA, the anticipated profit of USD 36 billion indicates a modest increase from last year’s figure of USD 32.4 billion. The announcement was made during the Annual General Meeting (AGM) in New Delhi, where IATA’s Director General Willie Walsh emphasized the need to keep aviation out of trade disputes.
This AGM is significant as it celebrates a return to India after four decades.
Highlighting ongoing concerns, Walsh noted a backlog of 17,000 aircraft, with 1,100 planes under ten years old currently grounded, while the fleet replacement rate sits at just three percent.
For the year 2025, airlines worldwide are on track to record a profit of USD 36 billion, an uptick from the USD 32.4 billion achieved in 2024, though slightly lower than the USD 36.6 billion forecast made in December 2024, according to IATA.
Walsh mentioned that while the projected profit is considerable, it breaks down to approximately USD 7.20 per passenger per segment. This slim margin means any new tax, rise in airport fees, increased navigation charges, demand fluctuations, or costly regulations could pose a significant challenge to the industry.
Revenues for the airline sector are anticipated to reach a remarkable USD 979 billion in 2025, which is about 1.3 percent higher than the previous year’s earnings, as reported by IATA. This association represents around 350 airlines, accounting for over 80 percent of global air traffic.
The upcoming World Air Transport Summit is expected to attract around 1,700 participants along with the AGM.
The Indian aviation industry is noted for directly employing approximately 369,700 individuals and generating a GDP contribution of about USD 5.6 billion.
When accounting for indirect and induced effects, alongside tourism contributions, the total climbs to 7.7 million jobs and a GDP contribution of USD 53.6 billion, representing about 1.5 percent.
Looking forward, the next IATA AGM is scheduled to take place in Brazil in 2026.
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Based on an article from economic times: https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/airlines-projected-to-report-usd-36-billion-profit-in-2025-iata/articleshow/121562118.cms
