IATA Projects Over $36 Billion Profit for Airlines in 2025

The International Air Transport Association (IATA) has projected a net profit of $36 billion for global airlines in 2025, marking an increase from the $32.4 billion recorded in 2024.

This projection was shared in the 2025 Airline Industry Financial Outlook, released by IATA Director General Willie Walsh.

The report notes that the industry’s net profit margin is expected to reach 3.7% in 2025—up from 3.4% in 2024 and slightly ahead of the previously projected 3.6%. Return on invested capital is forecast at 6.7%, a marginal increase from 6.6% in the previous year, maintaining consistency with earlier estimates.

Operating profit is anticipated to hit $66 billion, up from an estimated $61.9 billion in 2024, though slightly below the earlier projection of $67.5 billion. Total revenue for the sector is expected to rise to $979 billion—1.3% more than in 2024, albeit short of the $1 trillion forecast.

Walsh attributed the positive outlook to a notable drop in jet fuel prices, which have declined by 13% compared to 2024 and are 1% below prior estimates.

“Despite trade tensions and dips in consumer confidence, we expect airlines to carry more passengers and cargo in 2025 than in the previous year,” he said. “This underscores the sector’s resilience and the effectiveness of strategies implemented to strengthen financial performance.”

While the $36 billion profit figure appears substantial, Walsh emphasized it translates to just $7.20 in profit per passenger per segment. He cautioned that any sudden increase in taxes, regulatory costs, or external economic shocks could threaten this fragile margin.

He urged policymakers to consider the pivotal role airlines play in supporting 86.5 million jobs and contributing 3.9% to global economic activity when making decisions that impact the sector.