Airlines Struggle with Plane Delays: IATA Predicts 2025 Revenue Surge

The International Air Transport Association forecasts over a trillion dollars in revenue and record passenger numbers in 2025 despite significant delays in new aircraft deliveries. The industry's growth is hindered by supply chain disruptions at Boeing and Airbus, leading to rising costs and frustrations over efficiency and monopolistic supplier behavior.

In an optimistic yet challenging forecast, the International Air Transport Association (IATA) anticipates that airline industry revenues will surpass a trillion dollars by 2025, accompanied by record passenger numbers. However, industry growth is currently obstructed by significant delays in aircraft deliveries from aviation giants Boeing and Airbus.

Willie Walsh, IATA's chief, criticized suppliers' monopolistic behaviors, attributing delays to them and cutbacks at planemakers. These setbacks prevent airlines from adopting more fuel-efficient models, thereby escalating costs. Walsh emphasized the industry's patience has worn thin, and pressure might be necessary to ensure suppliers expedite their production.

Despite these challenges, the airline industry is recovering from the pandemic-induced $140 billion loss in 2020, driven by rebounding travel demands. However, environmental concerns persist as increased flights heighten emissions. IATA remains hopeful for declining jet fuel prices but warns that potential geopolitical conflicts could affect future growth.

(With inputs from agencies.)