Global airlines set for record net profit next year, predicts IATA

Global airline trade body IATA said on Tuesday the airline sector would post record profits next year despite ongoing supply chain issues leading to slower aircraft deliveries and a delay in rolling out more fuel-efficient jets.

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The projection comes as plane manufacturer Airbus cut its plane delivery target for 2025, citing a quality issue with some metal fuselage panels on its A320 planes.

The world’s leading jetmakers Airbus and Boeing have both faced delivery delays to their airline clients in recent years.

Without newer, more efficient planes, airlines say they cannot cut back fuel costs while flying more people. Still, IATA struck an optimistic note for the year to come, pointing to Europe in particular as it overtakes the US as the region with the highest net profit per passenger.

“airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” said International Air Transport Association director general Willie Walsh in a statement.

He later added that a slight dip in jet fuel prices could help provide some financial relief, but regulatory costs, particularly in Europe, as well as uncertainty tied to global conflict, drone incursions and GPS interference are hampering potential for even greater profitability.

Walsh said confidence in Airbus has waned, while Boeing’s performance has improved, amid ongoing supply chain issues. Earlier this month the European planemaker was forced to slash delivery targets when defects surfaced in some of its fuselage panels, days after recalling 6,000 A320-series planes over a software glitch linked to cosmic radiation.