Global economy faces headwinds, but aviation is expected to defy them
A Turkish Airlines plane landing from a park next to Los Angeles International Airport on Dec. 26, 2024.
Mario Tama | Getty Images
The aviation industry is poised for growth in 2025 amidst global economic uncertainties, according to the International Air Transport Association (IATA).
Despite a projected drop in global GDP growth, the aviation sector is expected to see improvements in revenue, operating profits, and net profits compared to 2024.
Net profits for the industry are forecasted to reach $36 billion in 2025, driven by lower jet fuel costs and increased efficiency.
Jet fuel costs are expected to decrease to $86 per barrel in 2025, resulting in overall cost savings for airlines.
CEOs of major airlines remain optimistic about the industry’s resilience, citing growth opportunities in emerging markets like India and Latin America.
CEO perspectives
Industry leaders emphasize the potential for growth in regions like Asia-Pacific, where demand is expected to surge in 2025.
North America is projected to lead in profit generation, while Asia-Pacific shows the highest demand growth, driven by factors like visa relaxations and market expansion.
The economic landscape poses challenges, but the aviation sector remains resilient and adaptable to changing market conditions.
