Global airlines cut profit projections amid trade tensions, delivery delays

The International Air Transport Association (IATA) slashed its 2025 profit forecast for the global airline industry to $36 billion, down slightly from $36.6 billion, citing trade tensions, lower consumer confidence, and major delays in aircraft deliveries.

Profits are still projected to rise from last year’s $32.4 billion thanks to strong post-pandemic travel demand and lower fuel prices. But IATA Director General Willie Walsh warned that the profit per passenger is just $7.20—leaving little room for economic shocks.

Trump-era tariffs and tighter border policies are also denting traveler confidence, particularly in the US, prompting many to delay their trips.

Airlines are also frustrated with aircraft delivery delays. IATA Director Walsh called them “off-the-chart unacceptable.” It has forced many carriers to operate older planes and pay more to service jets whose outdated spare parts are becoming increasingly scarce.

Walsh cautioned that the higher costs of operating carriers could lead to increased airfares.