Airlines Cut 2025 Profit Forecast on Trade and Delivery Delays

Global airlines have lowered their profit outlook for 2025 due to rising trade tensions and ongoing aircraft delivery delays. The International Air Transport Association (IATA), representing the global airline industry, now forecasts a combined profit of $36 billion for the year. While slightly below earlier estimates, the figure still reflects an improvement over 2024 earnings.

The revised forecast highlights the growing impact of geopolitical uncertainty, which is reducing consumer confidence and slowing travel demand in certain markets. Airlines are also facing delivery delays of new aircraft, affecting their ability to expand fleets and increase capacity as planned.

Despite these challenges, the industry continues to benefit from record passenger volumes. Travel demand remains strong as more people return to the skies following years of disruption. A recent drop in oil prices has also eased pressure on airline operating costs, helping to partially offset the financial impact of supply chain issues and trade-related disruptions.

IATA’s updated projections reflect the delicate balance airlines must maintain amid global volatility. While demand is fueling revenue growth, external pressures—including tariffs, regulatory uncertainty, and manufacturer delays—are clouding near-term financial performance.

The global aviation industry remains in a recovery phase, and IATA emphasized that profitability is still trending upward compared to previous years. However, continued disruptions in aircraft supply and geopolitical risks will require close monitoring. Industry executives are expected to adjust their strategies accordingly as they assess further economic shifts and policy developments impacting global air travel.

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Sources: AirGuide Business airguide.info, bing.com, nbcpalmsprings.com