GENEVA : For the first time in history, the global aviation industry is set to cross the $1 trillion revenue milestone in 2025, reaching an estimated $1.007 trillion – a 4.4 per cent increase from 2024 – according to the International Air Transport Association (IATA).
Willie Walsh, IATA’s Director General, attributed the growth to strong domestic aviation markets like China and India, coupled with sustained high load factors exceeding 83 per cent. “This profit forecast reflects airlines’ effective cost management and investments in decarbonisation, even as they face challenges like infrastructure constraints, supply chain issues, and higher tax burdens,” Walsh said.
This landmark achievement will be driven by strong passenger demand, declining oil prices, and stringent cost controls.
Passenger traffic
Passenger traffic is projected to grow by 6.7 per cent to 5.2 billion in 2025, reflecting the sector’s ongoing recovery and resilience.
Industry net profit is expected to climb to $36.6 billion, up from $31.5 billion in 2024, with operating profit estimated at $67.5 billion. Average airfares, including ancillary charges, are forecast to decrease by 1.8%, bringing the cost per ticket to $380.
Jet fuel prices are expected to drop to $87 per barrel in 2025 from $99 in 2024, even with a 6 per cent increase in fuel consumption. This reduction will bring total fuel costs down by 4.8 per cent to $248 billion, comprising 26.4 per cent of operating expenses compared to 28.9% in 2024. Despite the optimism, IATA cautioned that airlines could face rising tax burdens as pandemic-era tax loss carry-forwards are depleted. Nevertheless, the Asia-Pacific region,
