Sky-High Prospects: IATA Projects Trillion-Dollar Revenue for Airlines by 2025

The International Air Transport Association forecasts a trillion-dollar revenue and record passenger numbers for airlines by 2025. Despite challenges with aircraft manufacturers, the industry expects a significant profit surge from 2024. However, geopolitical uncertainties and potential policy shifts cast shadows on the sector's future outlook.

The International Air Transport Association (IATA) has projected industry revenues surpassing a trillion dollars by 2025, as it expects a record number of passengers, according to information released on Tuesday. However, the industry's growth is being obstructed by delivery delays from major aircraft manufacturers Boeing and Airbus.

Willie Walsh, IATA's chief, expressed frustration over the situation, citing the unacceptable hindrance in acquiring new, fuel-efficient aircraft essential for airlines. He accused suppliers of behaving like monopolies and suggested increasing pressure to resolve these delivery issues.

Despite these challenges, IATA anticipates the airline industry to achieve net profits of $36.6 billion in 2025, a growth from the anticipated $31.5 billion in the previous year. While robust travel demand fueled recovery, potential risks include geopolitical tensions and possible policy reversals under a potential second term of U.S. President Donald Trump.

(With inputs from agencies.)