(New Delhi) – The International Air Transport Association (IATA) announced updates to its 2025 airline industry financial outlook, showing improved profitability over 2024 and resilience in the face of global economic and political shifts.
Net profits at $36.0 billion, improved from the $32.4 billion earned in 2024, but slightly down on the previously projected $36.6 billion (December 2024). Net profit margin at 3.7%, improved from the 3.4% earned in 2024 and the previously projected 3.6%.
Return on invested capital at 6.7%, improved from the 6.6% earned in 2024 and largely unchanged from previous projections. Operating profits at $66.0 billion, improved from an estimated $61.9 billion in 2024, but down from the previously projected $67.5 billion.
Total revenues at a record high of $979 billion (+1.3% on 2024, but below the $1 trillion previously projected). Total expenses at $913 billion (+1.0% on 2024, but below the previously projected $940 billion).
IATA said that the total traveler numbers reaching a record high 4.99 billion (+4% on 2024, but below the previously projected 5.22 billion) and total air cargo volumes reaching 69 million tonnes (+0.6% on 2024, but below the previously projected 72.5 million tonnes).
“The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections. The biggest positive driver is the price of jet fuel which has fallen 13% compared with 2024 and 1% below previous estimates. Moreover, we anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence. The result is an improvement of net margins from 3.4% in 2024 to 3.7% in 2025.
That’s still about half the average profitability across all industries. But considering the headwinds, it’s a strong result that demonstrates the resilience that airlines have worked hard to fortify,” said Willie Walsh, IATA’s Director General.
