Global airlines see growth in 2025 despite supply chain issues

By Emma Farge and Joanna Plucinska

GENEVA (Reuters) - Global airlines on Tuesday raised their profit forecast for 2025 compared to the prior year, projecting industry-wide revenues at more than a trillion dollars for the first time and a record 5.2 billion passengers globally despite ongoing supply chain woes.

Airlines around the world have seen their growth hampered by difficulties at planemakers Boeing (NYSE:BA ) and Airbus which have delayed jet deliveries.

Without newer, more efficient planes, airlines say they cannot cut back jet fuel costs while flying more passengers.

Still, the International Air Transport Association (IATA) said it expected the worldwide industry to generate 36.6 billion dollars of net profit this year, up from 31.5 billion dollars in expected net profit in 2024.

"All these efforts will help to mitigate several drags on profitability which are outside of airlines' control, namely persistent supply chain challenges ... and a rising tax burden," said Willie Walsh, IATA's Director General.

That comes four years after the industry collapsed to a $140 billion loss in 2020 as a result of the pandemic, but which has recovered thanks to robust travel demand.

Jet fuel prices are also set to go down, offering some relief to airlines.



However, uncertainty tied to global conflicts in the Middle East and Ukraine as well as the incoming U.S. presidential administration could pose risks to the sector's health, IATA said.

Passenger yields - or the average amount paid by a passenger to fly one mile - are expected to fall by 3.4% compared with 2024.

Source: Investing.com