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Global Airline Profit Set to Reach $36 Billion in 2025: IATA

Written by: Team Angel OneUpdated on: Jun 3, 2025, 12:32 PM IST
Airlines are set to earn $36 billion in profit in 2025, says IATA, slightly up from last year, but still facing supply delays and rising operational pressure.
Global Airline Profit Set to Reach $36 Billion in 2025: IATA
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The International Air Transport Association (IATA) has projected a net profit of $36 billion for the global airline industry in 2025. This is an increase from the $32.4 billion profit recorded in 2024, although slightly lower than the $36.6 billion estimate issued in December 2024.

Passenger Revenue Margins Remain Thin

Despite the overall increase, the profit works out to around $7.20 per passenger per flight segment. IATA noted that the industry continues to operate with narrow margins, where even small changes in taxes, airport charges, or regulations could affect stability.

Revenue and Fleet Data

Total revenue for the industry is expected to reach $979 billion in 2025, up by 1.3% from 2024. Supply chain issues remain a concern. There is currently a backlog of 17,000 aircraft waiting to be delivered. In addition, about 1,100 aircraft that are less than 10 years old are still in storage. The fleet replacement rate stands at 3%.

IATA AGM Held in India After 42 Years

The IATA Annual General Meeting (AGM) and World Air Transport Summit are being held in New Delhi this year, it is the first time since 1983 that India is hosting the event. Reports suggest that around 1,700 participants are attending.

Comments on Airspace Use

During the AGM, IATA’s Director General, Willie Walsh, said that airspace should not be included in trade disputes. The statement comes amid growing concerns about the operational risks that arise from geopolitical tensions.

Read More: InterGlobe Aviation Becomes the Third Largest Airline

India's Aviation Sector Data

According to IATA, India’s aviation industry directly employs 3,69,700 people and contributes $5.6 billion to GDP. When indirect employment and tourism-related impact are included, the sector supports 7.7 million jobs and adds $53.6 billion to the GDP, accounting for 1.5% of the total.

Conclusion

The next IATA Annual General Meeting is scheduled to be held in Brazil in 2026. The global airline industry is on track for moderate profit growth in 2025, but challenges like tight margins, aircraft backlogs, and geopolitical risks continue to shape its recovery.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 3, 2025, 12:32 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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