Airlines less optimistic for 2025 amid fuel costs, tariff pressure: IATA

Airlines revised down their traffic and profit forecasts for 2025 as rising tariffs and fuel costs pressured the industry. Industry leaders warned that increased tariffs risked further impact on the sector.

 Willie Walsh, Director General, International Air Transport Association said  "So consumers at the end of the day are paying more because airlines are facing higher fuel charges—and there's zero environmental benefit."

They called for aerospace, aircraft, and engines to be excluded from tariff regimes and urged a return to the 1979 exemption agreement. Fuel suppliers added compliance fees linked to the EU’s Sustainable Aviation Fuel mandate, increasing costs for airlines. These measures restricted growth and challenged the benefits aviation provides.