GENEVA (AFP) – Air passenger numbers are forecast to top five billion for the first time next year and the sector’s revenues will break the trillion-dollar barrier, the global aviation body International Air Transport Association (IATA) said yesterday.
“Passenger numbers are expected to reach 5.2 billion in 2025, a 6.7 per cent rise compared to 2024 and the first time that the number of passengers has exceeded the five billion mark,” IATA said in a statement.
Total industry revenues are meanwhile forecast at USD1.007 trillion, helped by falling oil and fuel prices, “the first time that industry revenues top the USD1 trillion mark,” it added. Revenues will be up 4.4 per cent from 2024, it said.
All of this gives a good financial performance after a post-pandemic bounce-back, IATA chief economist Marie Owens Thomsen told a news conference in Geneva.
IATA’s Director General Willie Walsh said in the statement that IATA expected profits of USD36.6 billion despite “persistent supply chain challenges, infrastructure deficiencies, onerous regulation and a rising tax burden”.
IATA represents around 340 companies that account for 80 per cent of world air traffic.
Airlines have been hit by rising fuel costs but IATA said it expected to ease next year, with the cost of jet fuel averaging USD87 a barrel, down from USD99 in 2024.
“Lower oil prices and resulting fuel costs are a major driver of improved prospects for airlines in 2025,” it said. “Should these not materialise for any reason and considering the industry’s thin margins, the outlook could change significantly.”