NEW DELHI: Airlines are expected to post a combined profit of $36 billion in 2025, up from $32.4 billion last year, the International Air Transport Association (IATA) said on Monday.Speaking at IATA’s Annual General Meeting (AGM) in New Delhi, Director General Willie Walsh emphasized that airspace should remain free from trade war disruptions, urging governments to avoid using it as a tool in geopolitical disputes.This marks India’s first hosting of the AGM since 42 years ago. Walsh highlighted supply chain challenges, noting 17,000 aircraft backlog, 1,100 relatively new planes in storage, and a three per cent fleet replacement rate.IATA forecasts global airline profits of $36 billion for 2025, surpassing 2024’s $32.4 billion but slightly below December 2024’s projection of $36.6 billion. Walsh noted that whilst $36 billion profit appears substantial, it translates to merely $7.20 per passenger per segment.He cautioned that this modest margin leaves little room for additional taxes, increased charges, demand fluctuations or costly regulations that could test industry stability.IATA, representing approximately 350 airlines and over 80 per cent of global air traffic, predicts industry revenues will reach $979 billion in 2025, exceeding 2024 figures by 1.3 per cent.The World Air Transport Summit and AGM anticipate 1,700 attendees. IATA reports that India’s aviation sector directly employs 369,700 people, generating $5.6 billion in GDP.Including indirect, induced and tourism impacts, these figures expand to 7.7 million jobs and $53.6 billion GDP contribution (1.5 per cent). Brazil will host the next IATA AGM in 2026.
