Trade Barriers Threaten Global Air Travel and Economy

The International Air Transport Association warns that growing trade barriers could harm the economy and air travel sector. IATA Director General Willie Walsh emphasizes that isolationism destroys wealth, urging governments to leave aerospace out of trade wars as industry profits projections are lowered.

On Monday, the International Air Transport Association (IATA) highlighted the potential damage to the global economy and air travel sector posed by increasing trade barriers. IATA Director General Willie Walsh cautioned against isolationism, emphasizing the prosperity connectivity brings.

At the annual IATA meeting in New Delhi, Walsh criticized the multilateral system fragmentation, linking it to a decline in living standards. He also announced a reduction in projected 2025 industry-wide profits, citing trade tensions and sagging consumer confidence as causes.

The situation has been exacerbated by aircraft delivery delays and tariffs imposed by the U.S., leading to fears of an economic slump and impacting travel plans. Walsh urged governments to exclude aerospace from trade conflicts, warning of threats to longstanding aviation agreements.

(With inputs from agencies.)