As aviation industry leaders gathered in New Delhi in early June for IATA’s 81st Annual General Meeting (AGM) and World Air Transport Summit (WATS), the mood was cautiously optimistic.
By almost all parameters, ground lost during the pandemic has been recovered. Load factors are at record levels. Lower oil prices are compensating for any potential softening of strong demand. And we are anticipating a $36 billion net profit for 2025. Unfortunately, that is just a 3.7% net margin, which is far from commensurate with the value airlines create at a heart of a value chain that supports 3.9% of global GDP and 86.5 million jobs.
As ever, the operating environment is challenging. The impact of shifting global trade relations is, as yet, unknown. The fleet is under strain as airlines continue to suffer from disruptions in aerospace supply chains that are constraining growth, raising costs and delaying improvements in environmental performance.
The longer-term goal of achieving net zero carbon emissions by 2050 also ranks high among the challenges in our current year. SAF volumes are not ramping up fast enough, CORSIA continues to be undermined with new/increased environmental taxes, and air navigation efficiencies are being held back as Europe’s Single European Sky languishes. These issues must be resolved quickly to gain the pace needed to meet our common decarbonization target.
Every IATA AGM is special, and our 81st did not disappoint. Through our host airline, IndiGo, we were able to showcase India—a contemporary case study in how aviation is a driving force in national development. It was certainly an appropriate location to mark the first eight decades of an association founded to promote safe, regular and economical transport for the benefit of the peoples of the world.
We also celebrated the 35th anniversary of the Strategic Partnership Program (SPP). Along with a special presentation to four members who have been with us from the very beginning since 1990, we welcomed over 15 new AGM-level partners who joined the Program since the last AGM edition. With a 500-strong in membership, covering over 30 areas of activity our Strategic Partners are making valuable contributions to the work that IATA does with its members. We appreciate your support in making our industry safer, more reliable and sustainable.
The 82nd IATA AGM will be hosted by LATAM Airlines Group in Rio de Janeiro, Brazil (6-8 June 2026). I look forward to seeing you there!
By Willie Walsh, IATA Director General
