News
The International Air Transport Association (IATA) recently announced its financial outlook for the global airline industry in 2025, which shows a slight strengthening of profitability amid ongoing cost and supply chain challenges.
Net profits are expected to be $36.6 billion for a 3.6% net profit margin. There is a slight improvement from the expected $31.5 billion net profit in 2024 for a 3.3% net profit margin. Operating profit is expected to be $67.5 billion for a net operating margin of 6.7%, improved from 6.4% expected in 2024. The return on invested capital (ROIC) for the global industry is expected to be 6.8%. While this is an improvement from the 2024 ROIC of 6.6%.
Total industry revenues are expected to be $1.007 trillion, an increase of 4.4% from 2024, and would be the first time for them to top the $1-trillion mark. Cargo Revenues are expected to reach $157 billion, accounting for 15.6% of total revenues. Freight rates are expected to be $1.34, $0.06 less than in 2024 and 24.4% below 2014 levels. Cargo volumes are expected to reach 72.5 million tons, a 5.8% increase.
Several trends are expected to continue to be favorable for air cargo in 2025, which include continued geopolitical uncertainty in sea shipments routed through the Suez Canal and booming e-commerce originating in Asia.
