Global airline industry forecasts $1 trillion revenue by 2025 despite plane shortages

The International Air Transport Association (IATA) has forecasted a record-breaking $1.007 trillion in global airline revenue for 2025, alongside an unprecedented 5.2 billion passengers projected to take to the skies. This marks a significant recovery from the $140 billion loss the industry suffered during the pandemic. However, the optimism is tempered by ongoing supply chain issues hampering new jet deliveries.

Airlines are grappling with delays caused by production challenges at Boeing, Airbus, and their suppliers, leaving many carriers unable to replace aging fleets with more efficient planes. This has heightened operational costs and hindered efforts to reduce emissions. IATA Director General Willie Walsh has criticised suppliers, saying the industry’s patience is “running out” and calling for stronger measures to address bottlenecks.

Despite these challenges, falling jet fuel prices and strong travel demand continue to drive the industry’s recovery. Analysts also predict potential pro-business policies under a second Trump administration could bolster corporate travel and reduce fuel costs.

Commenting on the forecast, Myles Corey, founder of Spaero, stated:

“As the industry eyes a trillion-dollar milestone, collaboration across the aviation supply chain will be critical. From parts suppliers to airlines, we must focus on building a resilient and innovative ecosystem to meet this demand sustainably.”

Source: Reuters