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Airline industry scales back profit outlook amid trade tensions

Benedikt Kammel and Guy Johnson / Bloomberg
Benedikt Kammel and Guy Johnson / Bloomberg • 3 min read
Airline industry scales back profit outlook amid trade tensions
The new forecast compares with the US$36.6 billion profit target issued for 2025 at the end of last year, the International Air Transport Association (IATA) said in a statement Monday. Photo: Bloomberg
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The global airline industry stands to earn a collective US$36 billion ($46.42 billion) this year, a downward revision from the most recent prediction issued in December 2024 amid growing trade tensions and a drop in consumer confidence, the leading aviation association said.

The new forecast compares with the US$36.6 billion profit target issued for 2025 at the end of last year, the International Air Transport Association (IATA) said in a statement Monday. The figure translates into a profit margin of 3.7% on industry revenue of about US$979 billion, which was also revised from the December goal.

“The first half of 2025 has brought significant uncertainties to global markets,” IATA Director General Willie Walsh said in the release. At the same time, the industry is benefiting from lower oil prices, which are in turn trimming airlines’ fuel bills — the biggest single expense for carriers.

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