Airlines projected to report USD 36 billion profit in 2025: IATA

New Delhi: Airlines' profit is expected to touch USD 36 billion, slightly higher than USD 32.4 billion posted last year, IATA said on Monday.

Addressing the Annual General Meeting (AGM) of the International Air Transport Association (IATA) in the national capital, its Director General Willie Walsh asserted that airspace should be kept out of trade wars.

The AGM is taking place in India after 42 years.

Flagging concerns over supply chain issues, Walsh said there is a backlog of 17,000 aircraft and 1,100 planes under 10 years are in storage while the fleet replacement rate is three per cent.

In 2025, airlines globally are expected to report a profit of USD 36 billion, higher than USD 32.4 billion recorded in 2024, but slightly down compared to USD 36.6 billion projected in December 2024, as per IATA.

Walsh said that USD 36 billion profit is significant but that equates to just USD 7.20 per passenger per segment.

"It's still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test," he said.

The airline industry's revenues are expected to reach a historic high of USD 979 billion in 2025, around 1.3 per cent higher than the figure seen in 2024, according to IATA, which represents about 350 airlines comprising over 80 per cent of the global air traffic.

Around 1,700 participants are expected to attend the World Air Transport Summit, and the AGM.

According to IATA, India's aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of GDP.

When indirect, induced and tourism impacts are included, the totals rise to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent).

The next IATA AGM will be held in Brazil in 2026.