Trade barriers and plane delays challenge global airlines' growth

Airlines warned on Monday that growing trade barriers risked damaging the global economy and pledged to resist efforts by manufacturers to pass on tariffs as higher prices for aircraft.

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Airline bosses also complained that “unacceptable” aircraft delays were dampening growth at a time of record passenger numbers, as the International Air Transport Association shaved a key forecast for 2025 industry-wide profits.

“Like all forms of connectivity, flying makes the world more prosperous,” IATA Director General Willie Walsh said at the group's annual meeting in New Delhi.

“That stands in contrast to isolationism, trade barriers and the fragmentation of the multilateral rules-based system. These destroy wealth and lower living standards. For the times we live in, this is an important message,” he said.

Sweeping tariffs imposed by US President Donald Trump have stoked fears of an economic slowdown and squeezed discretionary spending, prompting many consumers especially in the United States to delay or scale back travel plans.

“The consumer is uncertain,” said JetBlue Airways CEO Joanna Geraghty.

IATA now expects global airlines to make a combined profit of $36.0 billion this year, down from a previous forecast of $36.6 billion in December, but up from $32.4 billion last year.

Walsh said there was no evidence so far that aircraft prices had increased due to tariffs, but that airlines would resist any attempt to charge more.