'Resilient' airlines head for record passenger numbers: IATA

International airlines anticipate a record 5.2 billion passengers in 2026, with profits for 2025 projected at $39.5 billion, an increase from earlier forecasts. Despite facing challenges like supply chain issues and geopolitical conflicts, the industry has built resilience, leading to stable profitability. However, aircraft availability issues are expected to limit performance in 2026.

International airlines expect to transport a record 5.2 billion passengers in 2026 despite global headwinds affecting the sector, the industry's trade association said on Tuesday.

Carriers also expect higher profits than previously forecast for 2025, and predict earnings at a comparable level next year, the International Air Transport Association (IATA) added.

IATA, which groups around 360 carriers representing 80 percent of global air traffic, said 2025 profits are projected to reach $39.5 billion, up from the $36 billion they predicted at the body's annual general meeting in June.

IATA director general Willie Walsh said the improved performance was "welcome news considering the headwinds the industry faces".

He said challenges included rising costs from bottlenecks in the aerospace supply chain, geopolitical conflict, sluggish global trade, and growing regulatory burdens.

Walsh attributed the improved outlook to air freight's better performance, achieved despite trade disputes triggered by US tariffs.

"Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability," he was quoted as saying in an IATA statement.

Profits in 2026 are projected at $41 billion, with persistent aircraft availability problems putting a cap on performance, IATA said.

Profitability projections differ markedly, however, between regions. Middle East-based airlines are expected to register a net profit per passenger of around $28.60, compared to $10.90 in Europe, $9.80 in North America, $3.20 in the Asia-Pacific and $1.30 in Africa.

Global passenger numbers this year are expected just shy of the five-billion figure, at 4.98 billion, up from 4.77 billion in 2024 the previous record figure.

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Source: EconomicTimes
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