Middle East Airlines to Lead Global Profit Margins in 2025, Says IATA

Airlines in the Middle East are projected to achieve the world’s highest net profit margin in 2025, reaching 8.7 percent, according to the International Air Transport Association’s (IATA) latest outlook presented at its 81st Annual General Meeting in New Delhi.

The report forecasts the region will post a net profit of $6.2 billion this year, slightly ahead of the $6.1 billion earned in 2024. Middle East carriers are also expected to generate $27.20 in net profit per passenger—well above the global average of $7.20.

“The Middle East will generate the highest net profit per passenger among the regions,” IATA said, citing robust economic performance and growing demand for both business and leisure travel. However, it warned that supply chain issues and delays in aircraft deliveries could limit growth potential. Many regional airlines are pursuing retrofit programmes to modernize existing fleets amid tight aircraft availability.

The sector’s strong showing comes amid a broader global recovery. Worldwide, airlines are forecast to post a collective net profit of $36 billion in 2025, up from $32.4 billion in 2024. Operating profit is expected to reach $66 billion, while industry revenue is projected at $979 billion—slightly below the $1 trillion mark previously anticipated due to macroeconomic headwinds and supply constraints.

Willie Walsh, IATA Director General, acknowledged that the global aviation sector continues to navigate uncertainty but remains resilient. “Jet fuel prices are down 13 percent compared to 2024, which is a major positive driver,” he said, noting that passenger and cargo volumes are expected to exceed last year’s levels despite weaker consumer confidence and ongoing trade tensions.

Passenger revenues are forecast to rise 1.6 percent to a record $693 billion. Meanwhile, cargo revenues are projected to decline 4.7 percent to $142 billion in 2025, with cargo yields falling 5.2 percent as demand slows and oil prices ease.

Walsh also expressed concern over aircraft delivery delays. “The number of aircraft scheduled for delivery in 2025 is 26 percent below what was promised last year,” he said, warning that the backlog of over 17,000 aircraft, with wait times up to 14 years, is hindering industry growth.

In terms of sustainability, IATA expects sustainable aviation fuel (SAF) production to double to 2 million tonnes in 2025—still less than 1 percent of total fuel needs. Costs remain high, with SAF projected to be over four times more expensive than conventional jet fuel next year. Walsh criticized fuel suppliers in Europe for passing compliance costs on to airlines.

Despite challenges, Walsh concluded that global aviation is on a solid trajectory. “Our profitability still doesn’t match the value we create, but the industry’s resilience is undeniable.”