Airlines on Monday revised down their traffic and profit forecasts for 2025, citing ‘headwinds’ for the global economy, with industry chiefs warning of the risk of increased tariffs impacting the sector.
The International Air Transport Association estimates fewer than five billion air journeys will take place this year, compared with the previously forecast 5.22 billion.
‘The first half of 2025 has brought significant uncertainties to global markets,’ IATA’s Director General Willie Walsh told its annual general meeting in New Delhi.
But he added: ‘Considering the headwinds, it’s a strong result that demonstrates the resilience that airlines have worked hard to fortify.’
Cumulative airline profits will reach $36 billion this year, $600 million less than expected, IATA said. Commercial aviation revenues are expected to remain below the $1 trillion forecast in the previous December projections, with IATA now reporting $979 billion.
