IATA Projects Optimistic Trends for Global Airline Sector in 2025
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Geneva, Dec 10 (NationPress) The global airline sector is expected to witness a modest uptick in profitability by 2025, even as it navigates persistent cost and supply chain obstacles, according to the International Air Transport Association (IATA). The organization emphasized some encouraging factors, such as falling oil prices and increasing connectivity.
Net profits are projected to reach 36.6 billion dollars in 2025, reflecting a 3.6 percent net profit margin, which is a slight improvement from the anticipated 31.5 billion net profit (3.3 percent net profit margin) for 2024, as stated by IATA.
The average net profit per passenger is anticipated to rise to 7.0 dollars in 2025, compared to 6.4 dollars in 2024. Additionally, the airline industry's operating profits are estimated to reach 67.5 billion dollars in 2025, resulting in a net operating margin of 6.7 percent, according to IATA.
Total industry revenues are forecasted to hit 1.007 trillion dollars, marking a 4.4 percent increase from 2024, while expenses are expected to climb by 4.0 percent to 940 billion dollars. This will be a historic milestone as it marks the first time that industry revenues surpass the 1-trillion-dollar threshold, as reported by Xinhua.
The statement also indicated that the number of passengers is expected to reach 5.2 billion in 2025, representing a 6.7 percent increase compared to 2024, which will be the first instance of the volume exceeding the five billion mark. Meanwhile, cargo volumes are projected to reach 72.5 million tonnes, reflecting a 5.8 percent increase from the previous year.
While discussing various factors that could hinder the industry's profitability, such as ongoing supply chain issues, infrastructure shortcomings, burdensome regulations, and escalating taxes, IATA's Director General Willie Walsh highlighted some positive elements that could help alleviate these challenges. These include lower oil prices, stringent cost control measures, investments in decarbonization, and the economic recovery post-pandemic.
IATA also underscored the widespread advantages of expanding connectivity. Latest estimates predict that airline employment will grow to 3.3 million in 2025. Airlines form the backbone of a global aviation value chain that supports 86.5 million jobs and generates 4.1 trillion dollars in economic impact.
"As we look toward 2025, it will be the first time that traveler numbers exceed five billion, and the number of flights will reach 40 million. This growth signifies that aviation connectivity will be pivotal in creating and sustaining jobs throughout the global economy," stated Walsh.
