“Today's India is filled with greater self-confidence than ever before. We are not only a vast market in the global aviation ecosystem, but also a symbol of policy leadership, innovation, and inclusive development,” said Modi in a wide-ranging speech covering multiple aspects of India’s aviation ecosystem.

It was a major coup for an IATA annual gathering to be addressed by the leader of a major global economy, underlining the importance India places on the air transport sector as traveller numbers soar, airlines strive to make international strides with huge aircraft orders and new airports open at pace.

Modi stressed that “the aviation sector is poised to become a centre of major transformation and innovation in the times ahead. India is fully prepared for all these possibilities.

“I say this on the basis of three strong pillars that India possesses: Firstly, India has the market - and this market is not just a group of consumers; it reflects the aspirations of a dynamic and ambitious society of India.

“Secondly, we have the demography and talent for technology and innovation - our youth are the new-age innovators, who are driving breakthroughs in fields like artificial intelligence, robotics, and clean energy.

“Thirdly, we have an open and supportive policy ecosystem for industry. With the strength of these three capabilities, we must work together to take India’s aviation sector to new heights.

“In recent years, India has witnessed an unprecedented transformation in the field of civil aviation,” said Modi. “Today, India is the third-largest domestic aviation market in the world. The success of our UDAN (Ude Desh ka Aam Nagrik) scheme is a golden chapter in Indian civil aviation. Under this scheme, more than 15 million passengers have availed affordable air travel, and many citizens were able to fly for the very first time.

“Our airlines are consistently achieving double-digit growth. Together, Indian and foreign airlines operate flights for nearly 240 million passengers annually - more than the total population of most countries in the world. And by 2030, this number is expected to reach 500 million passengers.

“Today, 3.5 million metric tonnes of cargo are transported by air in India, and by the end of this decade, that figure is projected to rise to 10 million metric tonnes.”

Modi outlined the investment India is making in new airports. “These are not just numbers - they are a glimpse into the potential of a New India. And Bharat is working on a futuristic roadmap to fully maximise this potential.

“We are investing in world-class airport infrastructure,” explained Modi, with the country growing from 74 operational airports in 2014 to 162 today.

“Indian carriers have placed orders for over 2,000 new aircraft. And this is just the beginning,” he said. “India’s aviation sector is standing at a take-off point from where it is ready to soar to great heights. And this journey will not just cross geographical boundaries, but will also lead the world towards sustainability, green mobility, and equitable access.”

Modi noted that the country is “equally focused on safety, efficiency, and sustainability. We are moving towards sustainable aviation fuels, investing in green technologies, reducing our carbon footprint, and ensuring both progress and protection of the planet.”

He highlighted India’s Digi Yatra App, an example of digital innovation in aviation. Using facial verification technology, it provides a complete seamless travel solution from airport entry to the boarding gate eliminating the need to carry paper documents or show any ID.

“I believe innovations like these, born from India’s experience in delivering quality services to such a large population, can benefit many other countries as well. This is a secure and smart solution, and it can serve as a model and inspiration for the Global South,” said Modi.

“One of the major reasons behind the rapidly expanding aviation sector in India is our commitment to consistent reforms. We are taking every possible step to make India a global manufacturing hub. In this year’s budget, we have announced ‘Mission Manufacturing’.

“Earlier this year, we passed the Protection of Interest in Aircraft Objects Bill in the Indian Parliament. This has given legal force to the Cape Town Convention in India. As a result, a new opportunity has opened for global aircraft leasing companies to operate in India.

“Many of you are already aware of the incentives being provided in GIFT City (Gujarat International Finance Tec-City). These incentives have made India an attractive destination for aircraft leasing.

“The new Indian Aircraft Act is aligning our aviation laws with global best practices. This means India’s aviation laws are now simpler, the regulations are more business-friendly, and the tax structure is streamlined. Therefore, this is an excellent opportunity for the world’s leading aviation companies to invest in India.

“Growth in the aviation sector means new flights, new jobs, and new opportunities. The aviation sector is creating new avenues for pilots, crew members, engineers, and ground staff.

“Another sunrise sector is emerging – MRO. Our new MRO policies have accelerated efforts to make India a global hub for aircraft maintenance.

“In 2014, there were 96 MRO facilities in India. Today, that number has increased to 154. Reforms like 100% FDI 9Foreign Direct Investment) under the automatic route, GST (Goods & Services Tax) reduction, and tax rationalisation have given the MRO sector new momentum. Now, our target is to make India a $4 billion MRO hub by 2030.

“We want the world to see India not just as an aviation market, but as a value-chain leader. From design to delivery, India is becoming an integral part of the global aviation supply chain.

“Our direction is right, our speed is right, and that gives us the confidence to keep progressing rapidly. I urge all aviation companies: Along with Make in India, also focus on Design in India.

“One more strong pillar of India’s aviation sector is its inclusive model. Today, over 15% of pilots in India are women - this is three times the global average. Across the world, the average participation of women in cabin crew roles is around 70%, while India’s figure stands at 86%. The number of female engineers in India’s MRO sector is also surpassing the global average.

“We have always placed safety as the top priority in aviation. India has aligned its regulations with ICAO’s global standards. Recently, ICAO’s safety audit appreciated our efforts. The adoption of the Delhi Declaration at the Asia-Pacific Ministerial Conference is a testament to India’s strong commitment.”

Modi concluded with a nod towards market access. “India has always supported Open Skies and global connectivity. We uphold the principles of the Chicago Convention.

 

“Let us work together to create a future where air travel is accessible, affordable, and secure for everyone.”

On the sidelines of the IATA AGM, currently underway in Delhi, India, the Saudi airline signed a strategic cooperation memorandum of understanding with the Air France-KLM group marking a significant step forward in global connectivity for guests traveling between Riyadh, Paris, Amsterdam, and destinations far beyond.

The MoU, signed at the 2025 IATA Annual General Meeting by Tony Douglas CEO Riyadh Air and Benjamin Smith CEO of Air France-KLM Group, sets the foundation for a dynamic partnership.

Subject to regulatory approvals, the collaboration aims to gradually introduce a wide range of benefits for guests and to unlock new opportunities across Western Europe, North and South America, the Middle East, Asia, and the Kingdom of Saudi Arabia.

A statement from both companies said the strategic partnership will focus on strengthening network connectivity, with both partners working together to maximize future opportunities through Riyadh Air’s hub in the capital of Saudi Arabia and Air France-KLM’s Paris-Charles de Gaulle and Amsterdam-Schiphol airport hubs. The recent launch of Air France’s Paris Charles de Gaulle–Riyadh service, alongside KLM’s established Amsterdam–Riyadh operations, reflects the shared commitment to expanding travel options for guests.

The partners are believed to be exploring opportunities for reciprocal loyalty program rewards, operational support, and lounge access. The partnership also extends to areas such as Maintenance, Repair and Overhaul (MRO), digital transformation, sustainability, and cargo services—ensuring a comprehensive approach to delivering value.

CEO of Riyadh Air, Tony Douglas, said: “This partnership not only strengthens our international network but also reinforces confidence in our growth trajectory and our role in supporting Saudi Arabia’s broader economic diversification goals under Vision 2030.”

Following the initial announcement in April 2025, the partnership is now targeting a formal launch in late 2025, subject to regulatory approvals. The global partnership will deliver new routing opportunities, increased operational agility, and unparalleled connectivity for customers across the global air freight market.

The Global Cargo Joint Business’ value proposition lies in enhanced routing flexibility and capacity options connecting APAC, the Middle East, Africa, the Indian Subcontinent, Europe, and the Americas. The partnership will unlock new routings not previously available via a single booking, opening fresh trade opportunities across the world. At launch, the parties will focus on key cargo markets, with additional countries expected to be included in future phases, in line with regulatory approvals.

The three carriers will be working to progressively align systems, processes, and commercial offerings to ensure a smooth rollout for customers. Streamlined products, services, enhanced digital solutions and a combined Avios loyalty proposition are expected to form part of the collective offering in due course.

The carriers will look to optimise freighter and belly hold capacity across their combined networks, improving efficiency and flexibility for customers. Additionally, coordinated ground handling and trucking will deliver a smoother experience for customers booking their cargo through the new cargo joint business.

At the same time, the three carriers will enter into individual agreements with the UN World Food Programme (WFP), the largest humanitarian organisation fighting hunger, very soon. First announced at Air Cargo Europe, the three carriers will propose to provide in total 1000 tonnes of free tonnage to support WFP in the delivery of essential food supplies and commodities. This initiative reflects Global Cargo Joint Business’ unified commitment to humanitarian aid and the broader goal of ending world hunger.

David Shepherd, chief executive officer at IAG Cargo, added: “This proposed joint business represents a real step change for our customers. By creating this single network, we are creating new connections which unlock new commercial opportunities. This network will be more efficient, reliable, and coordinated than anything offered through traditional interline agreements.  

“Just as we are focused on delivering for our customers, we are equally committed to making a positive impact in the communities in which we operate, which is why we are delighted that this includes backing the vital work of the World Food Programme.”

Mark Drusch, chief officer cargo at Qatar Airways Cargo, said: "We are thrilled to discuss the upcoming launch of our groundbreaking partnership on the sidelines of Air Cargo Munich. Together, we will deliver unparalleled service and efficiency, ensuring that our customers receive the very best in air cargo solutions. Moreover, this collaboration allows us to contribute meaningfully to corporate social responsibility by supporting the World Food Programme. Together, we are utilising our strong networks to make a positive impact on communities around the world, showcasing the true power of partnership.”

Mark Jason Thomas, Chief Executive Officer at MASkargo, commented: "This partnership is a major milestone for MASkargo and the global cargo industry. By teaming up with Qatar Airways Cargo and IAG Cargo, we’re extending our reach and unlocking seamless connectivity across Asia, the Middle East, Europe, and the Americas. It’s more than network expansion; it’s about transforming how cargo moves worldwide. As the leading cargo carrier in our region, MASkargo has always been committed to connecting Asia with the world. This collaboration takes us further, delivering greater value, reach, and efficiency for our customers. We’re also proud to support the World Food Programme’s mission, reinforcing our belief that logistics can be a powerful force for good."

“This collaboration reflects the growing role of the private sector in accelerating humanitarian response,” said Virginia Villar Arribas, WFP’s Deputy Director for Private Sector Partnerships. “We are excited to work with Qatar Airways Cargo, IAG Cargo, and MASkargo to shape an approach that can help WFP deliver faster, more efficiently, and at scale.”

IATA’s forecast put net profits at $36.0 billion, improved from the $32.4 billion earned in 2024, but slightly down on the previously projected $36.6 billion (December 2024).

Net profit margin at 3.7%, improved from the 3.4% earned in 2024 and the previously projected 3.6%. Industry revenues are forecast at $979 billion; total Traveller numbers will reach a record high 4.99 billion with total air cargo volumes reaching 69 million tonnes.

“The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections,” said Willie Walsh, IATA’s director general.

“The biggest positive driver is the price of jet fuel which has fallen 13% compared with 2024 and 1% below previous estimates,” he said. “Moreover, we anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence.

“The result is an improvement of net margins from 3.4% in 2024 to 3.7% in 2025. That’s still about half the average profitability across all industries. But considering the headwinds, it’s a strong result that demonstrates the resilience that airlines have worked hard to fortify,” said Walsh.

All regions are expected to deliver collective net profits in 2025. Most will see their financial performance improve compared with 2024, with Latin America being the exception.

Profitability, however, varies widely by carrier and by region. The collective net profit margin of African airlines is expected to be the weakest at 1.3% while carriers in the Middle East are forecast to be the strongest at 8.7%.

In Delhi, IATA announced that Luis Gallego, CEO of International Airlines Group (IAG), has assumed his duties as Chair of the IATA Board. Gallego is the 83rd Chair of the IATA Board on which he has served since 2018. Gallego succeeds IndiGo CEO Pieter Elbers, who will continue to serve on the Board.

During the AGM, IATA announced that the 82nd meeting will be held in Rio de Janeiro, Brazil in June 2026, hosted by LATAM Airlines Group.

The scale of the blocked funds issue in AME remains the same as a year ago, making it “still a big issue””, he explained. The difference is that the amounts owed are spread among several countries rather than the $850 million at its peak blocked by Nigeria in 2023-4. This has since been cleared.

As of April, IATA logged $1.28 billion in blocked funds globally down from $1.7 billion in October 2024. However, of this $1.1 billion is in AME, a number that has not changed since October.

The top blocked funds offenders are Mozambique at $205 million; XAF Zone (several states in West Africa) $191 million; Algeria $178 million; Lebanon $142 million; Bangladesh $92 million; Angola $84 million; Pakistan $83 million; Eritrea $76 million; Zimbabwe $68 million; and Ethiopia $44 million.

In total there are 29 countries in AME with blocked funds, said IATA.

IATA is constantly working on the blocked funds issue in AME, as it did in close co-operation with the Nigeria authorities to eradicate its debt. “If a country admits it has a problem, if they don't have dollars, we work with them to try to find solutions to reduce it [blocked funds] over a certain time,” said Al-Awadhi.

“But when you have a country that has it all [the money] but denies it to the point where they have meetings in Parliament saying, ‘shall we just wipe out the millions from the airlines and walk away’ then you start getting angry,” he explained.

In the Middle East “aviation is not developing evenly”, said Al-Awadhi. Geopolitical instability has been commonplace in the past 3-4 years, bringing operational constrains and pushing up costs, while there are stark economic disparities between the successful states and the struggling ones.

Al-Awadhi expanded on the issue of country sanctions noting that out of the 67 countries he covers in the AME region, 21 are under sanction. There are also 12 conflicts on-going in this region, he added. “This makes the region sometimes complicated to operate in, it has a negative impact on the industry and definitely on the airlines.”

One of IATA’s Middle East region priorities is to support the reintegration of states emerging from sanctions. For example, now that sanctions on Syria have been lifted, as of February 2025 by both the European Union and the US, IATA stands ready to help the country’s aviation entities rebuild.

The collaboration makes Air Arabia the first airline in the region to offer stablecoin-based payments, underscoring the carrier’s commitment to offering innovative digital solutions to its customer base. 

As the UAE’s first AED-backed stablecoin, AE Coin is pegged 1:1 to the UAE Dirham, ensuring price stability, security, and low transaction fees. With this integration, Air Arabia’s customers can now select the AEC Wallet at checkout when booking via Arabia’s website, offering a new convenient payment alternative that align with the UAE’s vision of a digital-first economy.

Adel Al Ali, Group chief executive officer, Air Arabia said: “We are proud to partner with Mbank to introduce AE Coin as a secure and innovative payment option for our customers. At Air Arabia, we are committed to embracing digitalization across our operations, and this partnership reflects our efforts to enhance our customer experience through technology. The newly introduced payment option through AEC Wallet reflects our ongoing efforts to adopt smart solutions that bring greater value, choice and flexibility to our growing customer base.”

Mohammed Wassim Khayata, CEO of Mbank, commented: “We are proud to partner with Air Arabia to offer AE Coin as a payment option for travelers. Air Arabia’s strong reputation as a leading low-cost carrier operator serving a diverse customer base aligns perfectly with our mission to provide accessible, secure, and affordable digital payment solutions to our community. Through this partnership, we are not only enhancing the booking process but also contributing to the UAE’s broader goal of creating a truly inclusive, digitally empowered financial ecosystem.”

This is especially critical in the African region which holds tremendous potential for growth and improvement in financial performance. As airlines strive to enhance passenger experiences and streamline operations, the maturity of their payment systems becomes a key differentiator.

To better understand the evolving landscape of airline payments in Africa and how African airlines can drive revenue growth, reduce fraud, enhance passenger experience and improve operational efficiencies, Visa and the African Airlines Association (AFRAA) conducted an Airline Payment Maturity Index survey. The survey, which was conducted on African airlines – but not limited to AFRAA member airlines- investigated the various stages of airline payment maturity.

The survey findings highlighted the importance of robust payment architectures and the potential financial implications of underperforming systems. Based on the Airline Payment Maturity Index questionnaire results, several priorities have emerged for the entire airline industry in Africa. Airlines must enhance their payment systems to improve efficiency, reduce fraud, and unlock new revenue opportunities through advanced payment technologies and streamlined processes.

Some highlights from the survey include:

 On payment architecture, African airlines are currently prioritising compliance, which is essential for maintaining standards. However, there is an opportunity to enhance operational efficiency through modernisation efforts.

 There is significant potential to leverage digital tools more effectively to improve the passenger experience. Addressing broader execution challenges can help fully utilise these tools.

 While the payment approval rate is moderate, fraud management can be improved to strengthen security measures and reduce vulnerabilities.

 Organisational structure and business processes provide moderate

support for payment systems. Enhancing the monitoring and utilisation of payment KPIs can facilitate data-driven decision-making and strategic adjustments. 

“At Visa, we recognise the critical role that efficient and secure payment systems play in the airline industry, particularly in Africa where there is immense potential for growth. The findings from our survey with AFRAA underscore the need for modernisation and robust fraud management to enhance operational efficiency and passenger experience. We are committed to supporting African airlines in their journey towards achieving these goals and unlocking new revenue opportunities through advanced payment technologies”, said Michael Berner, Head of Southern and East Africa, Visa

AFRAA Secretary General - Abdérahmane Berthé said: “We are pleased to have conducted the airline payments survey with Visa under the framework of AFRAA Partnership programme. The insights from the survey form important inputs for airlines’ strategic decisions on ways they can leverage enhanced payments performance to bolster revenue growth, decrease fraud, increase passenger experience and augment operational efficiency. We look forward to subsequent engagements with airlines through workshops and other avenues on specific support areas.”

Profit after tax reached US$187 million, marking a 30 per cent increase year-on-year, driven by robust passenger demand and operational efficiencies. Total revenue saw a 15 per cent rise compared to Q1 2024, supported by both passenger and cargo business.

Etihad continues to lead the region in passenger growth, carrying 5.0 million guests in Q1 2025 – a 16 per cent year-on-year increase – and maintaining strong momentum into Q2. With nearly 20 million passengers carried over the last 12 months, Etihad is the fastest-growing airline in the region.

Customer satisfaction reached a record high in Q1 2025, with scores improving by 20 per cent year-on-year. Gains were recorded across key touchpoints, including check-in, boarding, inflight service, food and beverage, Wi-Fi, and the updated website and mobile app. The quarter also saw the launch of new lounge and inflight menus, alongside upgraded service standards.

The fleet continued to expand to support the guest experience. One additional A380 returned to service during the quarter, offering First Apartments and The Residence. In April, Etihad took delivery of another A350-1000, with another Boeing 787 Dreamliner to follow. These new aircraft feature ultra-high-speed Wi-Fi and updated inflight entertainment systems.

Etihad also advanced its premium offering, expanding First Class to more routes and preparing new ground and inflight services for rollout from August. In April, the airline introduced its new A321LR cabin, becoming the first in the region to offer First Class on a single-aisle aircraft. The cabin features exclusive private First suites and lie-flat Business seats, bringing widebody comfort to medium-haul routes. The broader First class experience will include a new concierge service, private chauffeur transfers, dedicated check-in, meet-and-assist service, and baggage-free travel options in Abu Dhabi.

“We are proud to deliver a record-breaking quarter – both in profitability and in guest satisfaction,” said Antonoaldo Neves, Chief Executive Officer of Etihad Airways. “Achieving our highest-ever Q1 profit of US$187 million and our best-ever customer satisfaction scores reflects the strength of our business and the dedication of our people.

“We’re executing a clear strategy: grow sustainably, operate efficiently, and never lose focus on delivering remarkable experiences to our guests. From continued refinements to our onboard offering to improved airport services and the debut of our A321LR with a market-leading narrowbody product, we’re raising the bar in every part of the journey.

“Our network continues to expand with 16 new routes announced for 2025 and additional aircraft joining our fleet. As we grow, we remain disciplined and focused on quality, efficiency, and creating value for our customers and stakeholders.”

Passenger revenue grew by 16 per cent reaching US$1.5 billion, driven by increased capacity, continued network expansion and increased flight frequencies.

The aircraft underwent a two-month inspection, including a check on its oil-lever starter.  Two landing gears were also replaced with spares and the weather radar was replaced with a serviceable unit.

Profits for the Group, which includes cargo, catering and Qatar Duty Free, reached US$2.15bn in the 24/25 fiscal year – an increase of more than US$0.5bn on the year before.

Qatar Airways Cargo delivered a strong financial performance recording a 17% growth in revenue and achieving the best financial results since the COVID period. This is attributed to its agility in adapting to shifting market conditions, a focus on investing in digitalisation, deeper data-driven analyses, and its best-in-class reliability.

Qatar Airways Group chief executive officer, Badr Mohammed Al-Meer, said: “These record-breaking results are a testament to the hard work, skill and dedication of teams across all of Qatar Airways Group. I know that none of the outstanding results we’re announcing today would be possible without our people – more than 55,000 of them across the globe - and it’s our focus on fostering that talent, which has been a core focus of our Qatar Airways 2.0 strategy.

“We have also successfully implemented strategic partnerships throughout the industry, in order for the Group to remain agile in the face of ever-shifting world events, whether political, economic or environmental.

“All of this means we continue to offer and develop exceptional service in the skies, whether it’s the award-winning Qsuite, fine dining, or super-fast complimentary Starlink internet connectivity for all passengers.”

Key achievements of Qatar Airways Group over the last financial year include:

Record-breaking 28% increase in profit in 24/25 financial year.

Expansion of Hamad International Airport, enabling it to cater for 65m passengers annually.

First global airline, and first in MENA region, to install Starlink super-fast WiFi on its Boeing 777 fleet.

25% minority stake in Virgin Australia.

25% acquisition of South African premier regional airline, Airlink.

Introduction of conversational AI into its world-first digital cabin crew, Sama.

A range of technical MoUs future-proofing and diversifying the business across the sector, as well as working to fulfil the ambitions of the Qatar National Vision 2030.