Overview

• IATA now expects fewer than five billion passenger flights in 2025, down from a prior forecast of 5.22 billion
• Airlines are set to earn a cumulative $36 billion in 2025, $600 million below earlier estimates even as net margins improve to 3.7 percent
• Revenue projections for commercial aviation have been reduced to $979 billion from $1 trillion while air cargo volumes are now seen at 69 million tonnes
• Blaming trade disputes, sluggish economic growth and lingering supply chain bottlenecks, IATA called on governments to exempt the aerospace sector from further tariffs
• With kerosene prices forecast at $86 per barrel versus $99 in 2024, lower fuel costs are expected to underpin stronger airline earnings this year