Airline revenues to hit record USD 1tr in 2025 : IATA

Geneva : Airlines' revenues will hit record near USD 1 trillion in 2025 with a stable net profit of USD 36 billion. However, US tariffs are a drag on the industry, as airline performance and the growth in both air passengers and cargo numbers are down from estimates made at the end of 2024, said the International Air Transport Association on June 2.

IATA, the global trade organization for airlines, said in its 2025 aviation industry outlook report that airline revenue for the year is projected to increase 1.3 percent from 2024 to USD 979 billion. That is a new all-time high, although below the USD 1 trillion previously put forward at the end of 2024.

Net profit will improve to USD 36 billion from USD 32.4 billion in 2024, also below the original projection of USD 36.6 billion. Net profit margins will improve to 3.7 percent from 3.4 percent in 2024, and outdo the original projection of 3.6 percent.

Total air traveler numbers will increase 4 percent to five billion (original forecast 5.2 billion) while total air cargo volume is expected to tick upwards 0.6 percent to 69 million tons (original forecast 72.5 million tons).

Total demand for air travel is expected to grow by 5.8 percent year on year, measured in revenue passenger kilometers (RPK), down from the original prediction of 8 percent. In 2024, it increased 10.6 percent, compared to 2023.