IATA announced its financial outlook for the global airline industry in 2025. Demand is likely to grow by 6 per cent with average yield adjusting downwards by 0.7 per cent but remaining well above pre-pandemic levels, it stated. Middle East is likely to be the strongest at 8.2 per cent. Cargo revenues are expected to reach US$ 157 billion (15.6% of total revenues) in 2025. Freight rates (quoted in 2014 dollars/kg) are expected to be US$1.34, US$ 0.06 less than in 2024 and 24.4 per cent below 2014 levels. Several trends are expected to continue to be favourable for air cargo in 2025. These include continued geopolitical uncertainty in sea shipments routed through the Suez Canal and booming e-commerce originating in Asia. All regions are expected to show improved financial performance in 2025 as compared to 2024, and all regions are expected to deliver a collective net profit in both 2024 and 2025. Profitability, however, varies widely by carrier and by region. For example, the collective net profit margin of African airlines is expected to be the weakest at 0.9 per cent, while carriers in the Middle East are most likely to be the strongest at 8.2 per cent.
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