The global aviation industry has “remained strong and relevant” and is expected to reach new heights and “Traveler numbers will soon top 5 billion annually,” and the air cargo transport reaching 69 million tons, according to the Director General of International Air Transport Association (IATA), Mr. Willie Walsh. The IATA DG also urged states to leave aerospace industry out of trade wars.
Speaking at the 81st Annual General Meeting (AGM) of the Association held in New Delhi, India, Walsh highlighted the industry’s achievements, including a strong post-COVID recovery. “In 2025 airlines will make a $36 billion profit on revenues of $979 billion”, he said, while bemoaning the “industry’s profit margin of 3.7%” as being lower than most other industries.
Despite of the impressive figures, Willie Walsh notes that the industry still faces significant headwinds including safety, affordability and sustainability.
Safety
In 2024, IATA reports that there were “seven fatal accidents among 40.6 million flights, and 244 fatalities among 4.8 billion passengers.” The IATA DG stated that the association’s aim is “a future of zero accidents and zero fatalities” and emphasized on the importance of data in achieving that. He further emphasized the importance of safety, citing the need for better data sharing and accident investigation reports.
He noted that less than half of accident investigations over the last six years have published a final report, resulting in lost safety opportunities. IATA also highlighted the importance of sharing information to keep civil aircraft safe and secure, particularly in conflict zones. The association welcomed the imminent adoption of security management systems into the Chicago Convention’s Annex 17.
Affordability
The Director General highlighted several challenges affecting affordability, including issues with aircraft manufacturing, infrastructure development, and regulation. Walsh noted that the manufacturing sector is failing to deliver aircraft on time, resulting in a backlog of 17,000 planes and a 14-year wait between ordering and delivery.
Walsh states that: “It’s just not acceptable that manufacturers estimate it could take until the end of the decade to sort this mess out. IATA will help with solutions to bring more transparency and efficiency to the parts market. And, to avoid the situation getting worse, we advocate to keep aerospace outside of trade wars. But real solutions must come from the manufacturers.”
As regards infrastructure, the DG stated that: “Infrastructure development can best be addressed by Governments, airports and airlines collaborating to understand the genuine requirements of the industry and to ensure appropriate cost-effective infrastructure is available for the future.” He noted some of the positive developments that have been seen in different airports such as Morocco, New Delhi, Mumbai, US, UK etc.
According to Walsh, another way to address the affordability issue is through efficient and digitalized processes, for passenger travel, Walsh said: “Digital ID is the game changer. Travelers are at ease with digitalized travel processes, and they love skipping queues with their smartphone. So, you can imagine how they feel when faced with slow-moving immigration queues checking paper documents-particularly as the information has already been digitally provided to the authorities.”
Sustainability
On sustainability, the Director General emphasized the need for urgent action to achieve net-zero carbon emissions by 2050. He said: “In 2021 IATA members agreed to achieve net zero carbon emissions by 2050. From the outset we made it clear that it would be challenging and that airlines could not do this on their own. Governments, manufacturers, infrastructure operators, and fuel suppliers, everyone needed to be equally committed.”
Walsh highlighted the importance of Sustainable Aviation Fuels (SAF) and called for governments to create supportive policy frameworks to boost production and emphasized the need for industry-wide cooperation to achieve sustainability goals, including aircraft and engine manufacturers, air navigation service providers, and airports.
The Director General concluded by emphasizing the need for “true and active partnership” to achieve net-zero emissions and warned that “good intentions will not get us to net zero – action is what we need.