Global airline passenger numbers are expected to reach 5.2 billion in 2025, while combined international airline profits should hit $36.6bn.
Industry group, the International Air Transport Association (IATA) said combined profits should jump nearly 4% next year, with a near 7% rise in passenger numbers expected.
It would mark the first time global passenger numbers exceeded 5 million people in a single year.
The healthy growth figures would be despite fresh global supply chain constraints slowing airline expansion and fleet refreshment.
“We’re expecting airlines to deliver a global profit of $36.6 billion in 2025. This will be hard-earned as airlines take advantage of lower oil prices while keeping load factors above 83%, tightly controlling costs, investing in decarbonization, and managing the return to more normal growth levels following the extraordinary pandemic recovery. All these efforts will help to mitigate several drags on profitability which are outside of airlines’ control, namely persistent supply chain challenges, infrastructure deficiencies, onerous regulation, and a rising tax burden,” said Willie Walsh, IATA’s Director General.
“In 2025, industry revenues will exceed $1 trillion for the first time. It’s also important to put that into perspective. A trillion dollars is a lot—almost 1% of the global economy. That makes airlines a strategically important industry. But remember that airlines carry $940 billion in costs, not to mention interest and taxes. They retain a net profit margin of just 3.6%. Put another way, the buffer between profit and loss, even in the good year that we are expecting of 2025, is just $7 per passenger. With margins that thin, airlines must continue to watch every cost and insist on similar efficiency across the supply chain—especially from our monopoly infrastructure suppliers who all too often let us down on performance and efficiency,” said Mr Walsh.
