Airlines Project Record Profits and Growth in 2025
Airlines are set to carry more passengers and cargo in 2025 than in the previous year, according to the latest financial outlook from the International Air Transport Association. Despite global economic uncertainties, IATA forecasts an overall stronger year for the industry, with profits, passenger demand, and aircraft deliveries all projected to rise. The outlook was announced during the 81st IATA Annual General Meeting held in Delhi and hosted by IndiGo from June 1 to June 3, 2025.
Willie Walsh, Director General of IATA, acknowledged the challenges facing the industry, stating that the first half of 2025 brought considerable global uncertainty. Nevertheless, the industry is still expected to perform better than it did in 2024, albeit slightly below previous projections. Total industry revenue is projected to reach a record $979 billion, reflecting a 1.3% year-on-year increase. This surpasses the 1% projected rise in expenses, which strengthens profitability. Net profits are forecast to climb to $36 billion, up from $32.4 billion in 2024, while operating profits could reach $66 billion. However, these gains fall just short of earlier estimates of $67.5 billion.
Passenger revenue is expected to reach $693 billion, an increase of 1.6% over 2024. Passenger traffic, measured in Revenue Passenger Kilometers, is projected to grow by 5.8%. Walsh emphasized the narrow profit margin airlines still face, noting that the $36 billion profit translates to only $7.20 per passenger per segment, leaving the sector vulnerable to rising taxes, fees, and regulatory burdens.
Aircraft manufacturers are set to deliver 1,692 aircraft in 2025, the most since 2018, although this figure remains about 26% lower than previously forecast due to ongoing supply chain disruptions. IATA warned that further downward revisions are likely, with issues such as spare parts shortages and engine problems continuing to impact operations. More than 1,100 relatively young aircraft remain grounded, nearly 70% of which are equipped with Pratt & Whitney PW1000G engines. Walsh expressed deep frustration over these persistent challenges, calling the prospect of delays continuing into the next decade “unacceptable.”
Despite these hurdles, consumer confidence in air travel remains high. A global survey conducted by IATA in April 2025 among 6,500 recent travelers found that 97% were satisfied with their flying experience. A large majority also recognized the personal and economic benefits of air travel, with 89% saying it improves their lives and 78% believing it offers good value for money. Additionally, 81% of respondents acknowledged the airline industry’s visible efforts to achieve net zero carbon emissions by 2050, reinforcing strong public support for sustainability goals.
While the sector faces external risks and operational challenges, the outlook for 2025 reflects solid growth and optimism. Airlines are cautiously navigating the year with a focus on meeting demand, improving financial resilience, and accelerating progress toward long-term environmental commitments.
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