Global air travel set to break records in 2025, IATA reports
Global air passenger numbers are set to exceed 5 billion for the first time in 2025, with industry revenues surpassing $1 trillion.
Despite projected profits of $36.6 billion, the aviation industry faces some challenges.
Global air passenger numbers projected to exceed 5 billion in 2025
Industry revenues forecasted to surpass $1 trillion
Middle Eastern carriers expected to lead in profitability
Industry revenues are also forecasted to cross the $1 trillion milestone, supported by declining oil and fuel prices, and the recovery of travel and tourism rates post the COVID19 pandemic.
While all regions are expected to achieve collective net profits in 2024 and 2025, profitability will vary. Middle Eastern carriers are forecasted to lead with a net profit margin of 8.2%, while African airlines will have the weakest margin at 0.9%, IATA noted.
Despite these positive figures, Willie Walsh, IATA’s Director General, highlighted issues such as supply chain disruptions, infrastructure shortcomings, and rising taxes.
Aircraft and engine delivery delays remain a significant concern, with only 1,254 planes delivered in 2024, 30% below projections, leaving a backlog of 17,000 undelivered planes. These delays force airlines to operate older, less efficient fleets.
Popular
Spotlight
More from Business
Pakistan stocks closed lower on profit taking amid earnings season
Commercial banks, cement, and oil and gas exploration sectors witnessed selling
More from Lifestyle
Amazon takes the reins: What's next for James Bond?
An agreement announced Thursday shares ownership of the rights to 007 between the movie behemoth and the retiring producers
Animation aims for Oscar glory
Gender fluid designs kick off London Fashion Week
More from World
Israeli PM Netanyahu says Hamas will pay for not returning Shiri Bibas
Hamas official says likely body of Shiri Bibas 'mistakenly mixed' with others in Gaza rubble
Comments
See what people are discussing