Aviation soars, but profits still on the ground

India's aviation sector is experiencing rapid expansion. However, profitability remains a concern for airlines globally. IATA forecasts low per-passenger earnings for Asia Pacific in 2025. The region trails behind West Asia, North America, and Eur...

India’s aviation sector is expanding rapidly, but overall profitability remains elusive—not just for Indian carriers, but globally as well, said Marie Owens Thomsen, chief economist, International Air Transport Association (IATA).

IATA’s latest outlook projects the global airline industry will earn just $7.2 per passenger in 2025, a slight improvement from $6.8 in 2024. West Asia leads with $27.2, followed by North America at $11.1, and Europe at $8.9.

Asia Pacific, where India belongs, trails with a forecast of only $2.6 per passenger. While India-specific figures weren’t shared, Thomsen said the country likely sits below the regional average due to high costs and competitive pricing.

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