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Over 5 billion people to take flight in 2025: IATA
IATA also forecasts record-breaking revenues of about $1 trillion for aviation sector
Dec 11, 2024 02:51 pm
What's the story
The International Air Transport Association (IATA) has predicted a record number of air travelers in 2025. The global airlines would carry a whopping 5.2 billion passengers on over 40 million flights, the industry group's latest report stated. "Looking at 2025, for the first time, traveler numbers will exceed five billion and the number of flights will reach 40 million," said IATA Director General Willie Walsh.
Economic impact
Aviation sector's growth to boost global economy
The increase in air travel is not only a landmark for the aviation sector, but also a major economic contributor. Walsh stressed that this growth means that "aviation connectivity will be creating and supporting jobs across the global economy." The IATA report also forecasts record-breaking revenues for the sector, predicting an income of about $1 trillion. This never-seen-before revenue is likely to generate an estimated profit of $36 billion.
Industry challenges
Lower fuel prices, labor cost certainty to offset airfare decline
Despite the optimistic outlook, the IATA report also highlights potential challenges. It notes that while lower fuel prices and more certainty about labor costs may help balance a long-term decline in airfares, several risks loom ahead. The ongoing conflicts in Ukraine and the Middle East could disrupt global operations. Additionally, policy changes under Donald Trump's upcoming presidential administration could introduce further uncertainties into the mix.