Global airline industry expected to achieve historic profit levels despite slowed aircraft deliveries, rising regulatory costs, and renewed concerns over Airbus reliability.
The International Air Transport Association (IATA) announced on Tuesday that the global airline industry is on track to post record profits next year, even as persistent supply chain problems continue to delay aircraft deliveries and slow the rollout of fuel-efficient jets.
The projection comes at a time when major manufacturers are struggling to meet airline demand. Airbus recently cut its 2025 delivery target after identifying a quality issue with metal fuselage panels on its A320 family of aircraft, according to a Reuters report. Both Airbus and Boeing have faced repeated delays in recent years, disrupting fleet renewal plans for carriers worldwide.
Airlines say that without a steady supply of newer, more efficient jets, they face increased difficulty reducing fuel costs while accommodating rising passenger numbers.
Despite these challenges, IATA maintained a positive outlook for the year ahead. The association highlighted Europe as a standout region, noting it is expected to overtake the United States in net profit per passenger.
“Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” IATA Director General Willie Walsh said in a statement.
Walsh added that marginally lower jet fuel prices could offer some relief. However, he warned that rising regulatory expenses in Europe, combined with uncertainty linked to global conflicts, drone disruptions, and GPS interference, continue to limit the industry’s full earning potential.
He also acknowledged a shifting perception in the aircraft manufacturing landscape. Confidence in Airbus, he said, has dipped in light of repeated supply issues, while Boeing’s performance has shown signs of recovery.
Earlier this month, Airbus cut its delivery targets by 4%, confirming that output had already slowed in November. The setback followed the discovery of defects in fuselage panels and a recall of 6,000 A320-series jets over a software fault related to cosmic radiation. The A320 family, including the popular A321 recently surpassed Boeing’s 737 MAX as the most-delivered passenger jet in history.
“It’s disappointing for the industry, because we will have fewer new aircraft being delivered than was expected,” Walsh noted.
He pointed to engine manufacturers as a major bottleneck, saying they are delivering new and repaired engines far more slowly than airframe makers. This, he explained, has forced companies like Airbus to delay handover timelines and further complicate airline expansion plans.
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