The International Air Transport Association (IATA) has projected that global airlines will post a net profit of $36 billion in 2025, an increase from $32.4 billion in 2024, though slightly below the $36.6 billion forecast made in December.
Africa’s carriers are expected to contribute the smallest share, with just $200 million in profits and a net margin of 1.1%.
The projection, contained in the IATA 2025 Airline Industry Financial Outlook, highlights the continued struggle of African airlines, despite marginal gains.
The region’s airlines are dealing with high operational costs, limited access to aircraft and spare parts, and severe foreign exchange constraints in several countries. These conditions have stifled growth, but demand for air travel has remained strong across the continent.
“Highlights from the expected 2025 financial performance include:
“Net profits at $36.0 billion, improved from the $32.4 billion earned in 2024, but slightly down on the previously projected $36.6 billion (December 2024),” the report read in part.
It added, “Africa’s carriers face high operational costs and a low propensity for air travel expenditure in many of their home markets. A shortage of aircraft and spare parts is dampening growth in the region.”
Globally, the airline industry is forecast to achieve a net profit margin of 3.7% in 2025, up from 3.4% in 2024, with total operating profits reaching $66 billion. The report highlighted that the resilience is supported by factors including a 13% drop in jet fuel prices and rising passenger and cargo volumes.
Total revenues are expected to reach a record high of $979 billion, up 1.3% on 2024 but below the $1 trillion forecast earlier. Operating profits are projected at $66 billion, up from an estimated $61.9 billion in 2024.
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Regionally, North America is expected to generate the highest absolute profit at $12.7 billion, despite economic slowdowns and pilot shortages.
- Europe’s carriers will benefit from strong passenger demand and a favorable currency exchange, with profits projected at $11.3 billion.
- The Middle East is forecast to deliver the strongest net profit margin at 8.7%, supported by robust economic growth, generating $6.2 billion in profits.
- Asia Pacific, the largest market by passenger traffic, is expected to see profits rise to $4.9 billion, fueled by easing visa restrictions and tourism growth.
- Latin America faces challenges from weak currencies and regulatory pressures, with profits forecast to fall to $1.1 billion.
Furthermore, the IATA report noted that passenger numbers worldwide are projected to reach a record 4.99 billion in 2025, a 4% increase on 2024, although below earlier forecasts of 5.22 billion. Air cargo volumes are also expected to rise slightly to 69 million tonnes.
IATA’s Director General, Willie Walsh, said that despite global uncertainties, airlines have demonstrated resilience by improving net margins and flying more passengers and cargo in 2025 than in 2024.
