According to the latest data from the International Air Transport Association (IATA), airlines worldwide will surpass $1 trillion in revenue in 2025. If the forecast is correct, it would be the first time in history that air carriers have reached 1% of the global economy.
Carrier net income is expected to rise to $36.6 billion in 2025, representing 3.6% of net income – a slight improvement from 3.3% in 2024. The industry group also predicts a record 5.2 billion air passengers will take to the skies next year, covering more than 40 million flights. More good news is that the average airfare, including additional costs, will be $380 in 2025, down 1.8% from 2024. In real terms (adjusted for inflation), that’s down 44% from 2014, which economists say shows that consumers are benefiting significantly from the industry’s ongoing efforts to improve efficiency.
Lower oil prices will help offset other problems
Lower oil prices are likely to contribute significantly to this positive outlook, offsetting to some extent the uncertainty surrounding Trump, tariffs, trade wars and global conflicts. Profits are also forecast to improve despite persistent aircraft production problems following the Covid-19 pandemic, which have left airlines without the extra planes and new routes they had planned.
Some airlines have had to reduce the number of destinations to improve their ability to serve other flights – a situation that Willie Walsh, IATA’s director general, said would happen in 2023.
, airlines worldwide will surpass $1 trillion in revenue in 2025. If the forecast is correct, it would be the first time in history that air carriers have reached 1% of the global economy.){kind=link}