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Airlines could become a trillion dollar industry in 2025, but not without challenges along the way

The global airline industry is projected to achieve USD1 trillion in annual revenue for the first time in 2025, according to forecasts by IATA and Avolon.

Airlines are also forecast to deliver higher operating and net profits with improved margins, compared to 2024.

While operating conditions are generally favourable, airlines face several challenges such as ongoing aerospace supply chain problems, growth in non-fuel costs, operating restrictions due to conflict zones and growing pressure to achieve ambitious sustainability targets.

Ultimately, the financial performance of airlines in 2025 may be dictated by factors outside their direct control, most notably by the unpredictable path of fuel prices.

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