Aerolineas are set to see an increase in both passenger and cargo transportation in 2025 compared to the previous year, despite earlier predictions being impacted by trade tensions and declining consumer confidence. This positive outlook was highlighted by Willie Walsh, the Director General of the International Air Transport Association (IATA), during the annual 81st IATA Annual General Meeting hosted by IndiGo.

Walsh acknowledged the uncertainties affecting global markets in the first half of 2025 but emphasized that, overall, it is expected to be a better year for airlines in terms of profitability compared to 2024, even though slightly below previous projections. The latest data indicates that total revenues are projected to rise by 1.3%, outpacing the 1% increase in total expenses, which is good news for industry profitability. It is estimated that industry revenues will reach a record $979 billion in 2025, showing a 1.3% increase from the previous year.

Net profits are projected to reach $36 billion, a rise from the $32.4 billion in 2024, while operating profits are expected to climb to $66 billion, up from the estimated $61.9 billion in 2024. Despite these positive figures, Walsh reminds us that challenges persist. He stressed the importance of perspective when considering the industry's profitability per passenger and cautioned against potential challenges such as new taxes or regulations that could test the sector's resilience.

Passenger revenues are predicted to reach $693 billion in 2025, reflecting a 1.6% increase from the previous year, with passenger growth measured in Revenue Passenger Kilometers (RPK) expected to be 5.8%. The outlook also foresees a rebound in aircraft deliveries, with 1,692 aircraft scheduled for delivery, the highest number since 2018, although still below previous forecasts.

However, the forecast also mentions likely further downward revisions due to ongoing supply chain issues, which are anticipated to persist throughout 2025 and possibly beyond. Aircraft delivery forecasts have been revised downwards, in part due to shortages of spare parts and persistent engine problems, especially with Pratt & Whitney PW1000G engines.

Despite these challenges, public confidence in air travel remains robust, as demonstrated by a recent public opinion poll commissioned by IATA. The results showed high traveler satisfaction levels, with 97% of respondents expressing satisfaction with their travel experiences. Additionally, travelers acknowledged the positive impact of air travel on their lives, appreciated the travel planning choices available, and considered air travel to be a good value for money.

Furthermore, the air transport sector is committed to achieving net zero CO2 emissions by 2050, with high levels of traveler confidence in this goal. 81% of respondents agreed that the industry is demonstrating a strong commitment to working together to achieve this ambitious target, highlighting a shared dedication to sustainability within the industry.