The global aviation industry is showing strong signs of recovery post-pandemic, with net profits projected to reach USD 36 billion by 2025. However, behind the impressive figures lie pressing challenges in infrastructure, supply chains, and the urgent need for sustainable development—key highlights from the 80th IATA Annual General Meeting (AGM 2025).

Rising Profits, But Margins Remain Thin

According to IATA, total industry revenue is expected to reach nearly USD 979 billion in 2025—up by USD 100 billion from the previous year. Yet, net profit margins remain slim at just 3.7%, equivalent to only USD 7.20 profit per passenger. This underscores that despite its vast scale, the aviation sector still operates with significantly lower margins than many other industries.

Flight Safety Maintained, But Transparency Needed

In 2024, aviation maintained a high safety record, with 7 fatal accidents out of 40.6 million flights, reinforcing its status as the safest mode of transport. However, IATA noted that fewer than 50% of accident investigations are fully published, delaying global safety improvements. The organization urged greater data transparency to foster industry-wide learning and more effective risk prevention.

Airfares Drop, But Growth Bottlenecked by Infrastructure Gaps

One positive trend is continued affordability—airfares are now 40% lower than a decade ago, making air travel more accessible for tourism and business alike. Yet growth is constrained by aircraft delivery delays (over 17,000 pending orders could take 14 years to fulfill) and airport infrastructure shortages, particularly in rapidly growing markets such as Vietnam and India.

SAF: The Cornerstone of Sustainable Growth

A central focus at AGM 2025 was the promotion of Sustainable Aviation Fuel (SAF). Despite progress, SAF currently accounts for just 0.3% of total jet fuel consumption, far below the trajectory needed for net-zero carbon emissions by 2050. IATA urged governments to adopt incentive policies to accelerate SAF production and adoption, calling it a critical pillar of the industry’s decarbonization path.

IATA Urges Cooperation and Smart Policy

Willie Walsh, Director General of IATA, emphasized that aviation has made a remarkable comeback after the pandemic, but continues to face pressures from taxes, fees, inconsistent regulations, and lack of supportive policies. He called for stronger collaboration between governments and stakeholders to ensure a safe, sustainable aviation sector that continues to drive global economic growth.

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