Skies Set for Growth: IATA Forecasts Trillion-Dollar Future for Airlines

The IATA forecasts over a trillion dollars in revenue and record passenger numbers for the airline industry by 2025, despite ongoing challenges with plane delivery. Problems at Boeing and Airbus have delayed flights, impacting fuel costs. Meanwhile, industry recovery faces scrutiny from environmental groups amid predictions of net profit growth.

The International Air Transport Association (IATA) has projected that the airline industry's revenue will surpass a trillion dollars by 2025, alongside record passenger numbers. Despite optimism, IATA head Willie Walsh highlighted challenges tied to aircraft supply issues, resulting from delays by major manufacturers Boeing and Airbus.

Walsh criticized these companies, accusing them of acting like 'quasi-monopolies' and benefiting from their own supply chain problems. In addressing these concerns, he emphasized the need for increased pressure on key suppliers as engine-makers face setbacks and airlines struggle with maintenance bottlenecks.

Despite these challenges, the IATA expects the industry to bounce back from the substantial losses incurred during the COVID-19 pandemic. However, airlines face criticism over environmental impact as flight numbers rise. While fuel prices are projected to fall, global uncertainties and geopolitical tensions in Ukraine and the Middle East present risks to the sector's health.

(With inputs from agencies.)