Andrew Kessel
1 min read
In This Article:
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The International Air Transport Association trimmed its net profit estimate for the airline industry in 2025.
The IATA said declining consumer confidence and trade tensions have impacted demand. -
Despite those headwinds, the agency still expects record air travelers and total revenue this year.
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Southwest, American, and Delta each withdrew their full-year outlook in April.
The global airline industry is expected to generate less in profit this year than previously thought, the International Air Transport Association said Monday.
The IATA trimmed its net profit estimate for the industry to $36 billion in 2025 down from its prior forecast of $36.6 billion from December, citing trade tension and declining consumer confidence. The revised figure is still higher than the $32.4 billion earned in 2024.
“The first half of 2025 has brought significant uncertainties to global markets,” the IATA said. "Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections.” The agency said it expects a record 4.99 billion air travelers this year and all-time high revenue of $979 billion.
The downward revision comes as major U.S. carriers Southwest Airlines (LUV), American Airlines (AAL), and Delta Air Lines (DAL) each withdrew their full-year outlook in April amid economic uncertainty. United Airlines (UAL) offered a pair of earnings forecasts that varied on whether the economy entered a recession.
Shares of American, Delta, and United are each down significantly this year. Southwest shares turned positive last week as the airline introduced changes designed to drive up revenue, including nixing its signature “two bags fly free” policy.
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