Passenger numbers are expected to reach 5.2 billion in 2025, an increase of 6.7% compared to 2024
Dec 11, 2024
Total airline industry revenue is expected to exceed $1 trillion for the first time in 2025, a 4.4% increase from the previous year, according to a report released Tuesday by the International Air Transport Association (IATA).
Key takeaways
- Strategic importance: A $1 trillion revenue milestone represents nearly 1% of the global economy, underscoring the strategic importance of the airline industry;
- High costs and thin margins: Despite impressive revenues, airlines face $940 billion in costs, along with additional burdens such as interest and taxes. This leaves the industry with a modest net profit margin of 3.6%;
- Slim profit buffer: To put this in perspective, even in a strong year like 2025, the profit margin is only $7 per passenger. Such narrow margins underscore the need for airlines to maintain rigorous cost management and demand efficiency throughout the supply chain.
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