The global economy faces the opposite winds, but it is expected to challenge it

The uninterrupted global economy may face an uncertain in light of commercial tensions and geopolitical conflicts, but there is a bright point that investors can take in: flight.

The profitability of the aviation industry is expected to improve in 2025, although the growth of global total local products decreases to 2.5 % in 2025 from 3.3 % in 2024, according to the International Air Transport Association.

In a report released on Monday, iATA said it is expected to increase revenues, operating profits and net profits in the industry from 2024, although some were less than the expectations that were held in December.

For example, the net profit of the industry is expected to reach 36 billion dollars for a period of 2025, an increase of $ 32.4 billion obtained in 2024, but slightly less than the projection of $ 36.6 billion.

The net profit of the aviation industry is expected to increase to 3.7 % in 2025, from 3.4 % in the previous year.

The total revenue is expected to reach a record increase of $ 979 billion, which is 1.3 % higher than the previous year, but decreased from one trillion dollars in its last forecast.

IATA is mainly the best results to two factors: decrease in jet fuel costs and more efficiency.

It is expected that passenger loading factors will reach the highest level ever in 2025 by an average of 84 %, “as the expansion of the fleet and modernization remains a challenge amid the failure of the supply chain in the aviation sector.” PLF It explains the efficiency of an airline that fills its seats.

It is expected that the average bond fuel costs will be $ 86 a barrel in 2025, a decrease from $ 99 in 2024, and IATA, saying that it will translate into a total fuel bill of 236 billion dollars, less than 25 billion dollars from 261 billion dollars in 2024.

IATA said: “Recent financial statements show a fuel hedging activity over the past year, indicating that airlines will generally benefit from the low cost of fuel. The fuel is not expected to be affected by commercial tensions,” said iATA.

India and Pakistan Close the airspace recently To each other after the military strikes carried out by both sides in May. Pakistani aircraft were banned from Indian airspace until June 23, and Indian planes are prevented from Pakistan until June 24.

Wilson added: “Uncertainty is not useful for business, but the basic basics of this market … and the upscale aspect that we see before Air India pushes us forward, because we believe that there is a tremendous opportunity to achieve it,” Wilson added.

He said that India is the third largest air travel market in the world, and it has been estimated that it grows at an annual growth rate ranging from 8 % to 10 %. “If the Indians start traveling … with the density of China, it will completely explode in size at the international level,” he said.

“When the world sneezes in any way … flying is very quickly,” Adrian New Zoler, President and CEO of the Colombian carrier Aveanka, said in an interview on Sunday.

However, he said, the passenger loading factors in Avianca are still possible and the revenue improved. “So anxiety exists, but starting today, we still see the numbers there.”

Kilometers A scale for the volume of passengers carried by an airline. The scale is used to assess the performance of airlines and demand for passengers.

“If a flying company sees a fixed increase in RPKS on a specific road for several months, this carrier may lead to an increase in flight frequency or the deployment of larger planes to meet the increasing demand – which may enhance revenues and market share,” said iATA.

The request of strong passengers in the Asia and Pacific region has been attributed to the relaxation of the visa requirements in many Asian countries, especially China, Vietnam, Malaysia and Thailand.

However, IATA noted that the economic scene raises some challenges, as the gross domestic product expectations of the region, especially China, have been reduced.