IATA: Airline profitability strengthens in 2025 despite headwinds

In its latest update on industry performance, IATA said its 2025 airline financial outlook pointed towards improved profitability from the previous year. Mark Brown reports from Delhi.

IATA’s forecast put net profits at $36.0 billion. Image: Willie Walsh, IATA’s director general.

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.

Related content