Air travel booms in 2025 despite global uncertainty, airspace closures

Global air travel is set to soar to new heights in 2025, brushing aside turbulence caused by geopolitics, airspace bottlenecks, and continuing supply chain woes. 

Latest IATA data shows that global passenger demand rose 2.6% year-on-year (YoY) in June 2025, with both international and domestic traffic up.

And despite the continued supply chain setbacks and razor-thin margins airlines face, demand for global air travel and passenger confidence remain strong.

According to IATA fresh data, the demand for travel remains robust, with international passenger demand growing by 3.2% and domestic demand increasing 1.6% in the first half of the year.

Airline passenger revenues, meanwhile, are estimated to reach $693 billion this year, a modest 1.6% increase from 2024, despite airspace closures as the Israel-Iran war broke out.

Aircraft manufacturers, meanwhile, expect to deliver 1,692 planes in 2025 — the best output since 2018. 

However, this figure is still 26% below previous forecasts, laying bare the pressure on the aerospace supply chain. 

Persistent issues, particularly with engine manufacturers, have left over 1,100 relatively new aircraft grounded worldwide, with scores awaiting resolution of engine problems.

Overall, airline industry revenues are projected to set a record at $979 billion, with net profits expected to reach $36 billion, up from $32.4 billion in 2024. Operating profits should climb to $66 billion. 

But, as IATA Director General Willie Walsh cautioned, that hefty profit tally breaks down to just $7.20 per passenger per flight segment — a margin that could evaporate with the slightest increase in taxes, regulation, or disruption.

Walsh acknowledged that the first half of 2025 brought “significant uncertainties” to the global market, but insisted it will still be a better year for airlines than last, though not quite as profitable as initially hoped.

Despite operational headwinds, traveller confidence remains undimmed. 

A recent IATA-commissioned survey showed 97% satisfaction among recent flyers, highlighting air travel’s growing role in enhancing quality of life.

Additionally, 81% of passengers believe the aviation sector is serious about its vow to reach net-zero carbon emissions by 2050.

One upside is the strong passenger confidence, which fuels demand for global air travel.

Amid trade tensions, the June 2025 air cargo demand actually rose by 0.8%, while cargo capacity was also up by 1.7% year-on-year.

Despite the notably supply chain setbacks and razor-thin margins, the industry is on track for a record-breaking year in revenue and steady, if vulnerable, profits, all while navigating a stormy global landscape and working to keep the world’s air bridges busy.