Airlines trade group trims profit outlook

Cites trade barriers, plane delivery delays

- TIM HEPHER

The head of a global airlines industry body said yesterday that growing trade barriers risked damaging the economy and the air travel sector, and “unacceptable” plane delivery delays were frustrating growth plans at a time of record passenger numbers.

The International Air Transport Association (IATA) shaved a key forecast for 2025 industry-wide profits, blaming trade tensions and declining consumer confidence.

“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.

They also threaten a decades-old pact between more than 30 countries to eliminate duties on aircraft and their parts.