IATA Predicts 5 Billion Passengers and $1 Trillion in Airline Revenue by 2025
By:
Pilotcenter.net
The Pilotcenter.net News has released its financial projections for the global airline industry in 2025, anticipating a boost in profitability and a surge in annual passenger numbers that will surpass five billion for the first time ever in aviation history.
During the 2024 Global Media Day event in Geneva, Switzerland on December 10, 2024, Willie Walsh, the Director General of IATA, shared insights on the predicted financial landscape for 2025. He disclosed that global airlines are projected to rake in a net profit of $36.6 billion with a 3.6% net profit margin, marking a slight increase from the anticipated $31.5 billion net profit in 2024. The average net profit per passenger is forecasted to be $7.0, showcasing an improvement from the previous year.
It is estimated that total industry revenues will hit $1.007 trillion in 2025, climbing by 4.4% from 2024 and surpassing the trillion-dollar mark for the first time in a single year. The operating profit for the upcoming year is expected to reach $67.5 billion with a net operating margin of 6.7%. Meanwhile, expenses are projected to grow by 4.0% to $940 billion.
Global industry return on invested capital (ROIC) is likely to reach 6.8%, reflecting an improvement from the 2024 ROIC of 6.6%. Passenger numbers are anticipated to hit 5.2 billion in 2025, a 6.7% increase from 2024, alongside an expected rise in cargo volumes to 72.5 million tons, marking a 5.8% increment from the previous year.
Walsh expressed optimism regarding the industry's performance in 2025, stating, “We're expecting airlines to deliver a global profit of $36.6 billion in 2025.” He emphasized the importance of airlines managing costs efficiently, investing in decarbonization, and navigating through various challenges to maintain profitability.
The Director General also highlighted the pivotal role of the aviation industry in the global economy, generating substantial economic impact and providing millions of jobs worldwide. As the industry continues to grow, Walsh emphasized the significance of air transport connectivity in supporting global economic activities and contributing to achieving sustainable development goals.
While challenges such as supply chain issues and rising costs pose hurdles for further growth, the industry remains resilient. Marie Owens Thomsen, IATA's Chief Economist, remained optimistic about the financial outlook, affirming that the post-pandemic rebound and improved financial performance in 2025 are reasons to celebrate.
With a promising outlook for the global airline industry, the projected increase in profitability and passenger numbers in 2025 signifies a significant milestone for aviation, underlining the industry's resilience and potential for growth.