Global Aviation Leaders Converged in New Delhi for IATA’s 81st AGM and World Air Transport Summit
Pratt & Whitney GTF™ Engines Power Breeze Airways' Longest Airbus A220 Flight
Turkish Airlines Launches its Digital Product "TK Wallet"
7th IFTE Fair Held in Istanbul
The Effects of Bio-Inspiration on Structural Design
Financial Impact of Coronavirus on Aviation Industry
"Our goal is to increase our fleet to 813 aircraft by the year 2033."



Global Aviation Leaders Converged in New Delhi for IATA’s 81st AGM and World Air Transport Summit

Issue 31 - 2025
Global Aviation Leaders Converged in New Delhi for IATA’s 81st AGM and World Air Transport Summit

The International Air Transport Association (IATA) held its 81st Annual General Meeting (AGM) and World Air Transport Summit (WATS) in New Delhi, India, from 1–3 June 2025. Hosted by IndiGo, the event marked the return of the AGM to India after a 42-year interval, underscoring the country’s growing importance in the global aviation landscape. More than 1,700 participants—including airline executives, government officials, and international media—gathered for three days of strategic discussions, networking, and forward-looking debates.

A Symbolic Return to India

India’s Prime Minister, Shri Narendra Modi, delivered a keynote address during the plenary session, highlighting the government’s vision for the aviation sector as a driver of national development. Willie Walsh, IATA’s Director General, emphasized how dramatically India’s aviation market had transformed in recent years, citing record aircraft orders, infrastructure development, and rapid passenger growth.

Pieter Elbers, CEO of IndiGo and Chair of the IATA Board of Governors, welcomed the global airline community, remarking: “This is India’s time.” He underlined the dual role of aviation in boosting socio-economic growth and connecting India more closely with the global economy.

Strategic Discussions and Key Outcomes

The AGM’s agenda included the election of new Board members, approval of financial statements, and reports on governance reforms. Delegates also approved the location of the 82nd AGM in 2026. Beyond procedural matters, the sessions sparked debate on the industry’s financial health, regulatory challenges, and the roadmap toward net zero.

At the WATS, thought leaders and policymakers examined pressing issues such as:

• Financial Outlook: IATA’s Chief Economist, Marie Owens Thomsen, presented projections for 2025, noting both opportunities and headwinds.

• India as a Case Study: Panels explored how air connectivity was catalyzing India’s tourism, trade, and investment growth.

• Sustainability and Energy Security: Experts debated pathways for renewable energy, Sustainable Aviation Fuel (SAF), and alternative energy sources.

• Financing Net Zero: Industry and finance leaders confronted the $4.7 trillion cost of decarbonization, exploring innovative funding models.

• Taxation and Payments: Sessions assessed the implications of shifting global tax regimes and the rising cost of payment systems for airlines.

• Operational Challenges: Chief Operating Officers shared candid insights on infrastructure limitations, conflict zones, workforce shortages, and safety imperatives.

A Platform for Leadership Voices

One of the highlights was the CEO Panel, moderated by CNN’s Richard Quest, featuring Pieter Elbers (IndiGo), Joanna Geraghty (JetBlue), Adrian Neuhauser (Abra Group), and Richard Smith (FedEx). The panel offered an unfiltered look at the sector’s challenges and opportunities, from competitive dynamics to sustainability imperatives.

Other sessions, such as “The Big Picture” and the IATA Diversity and Inclusion Awards, reinforced the industry’s broader responsibilities—both geopolitical and social—while showcasing aviation’s role as a force for global good.

Networking and Collaboration

Beyond the plenary sessions, delegates engaged in receptions, exhibitions, and private meetings hosted by industry leaders including Airbus, Boeing, Rolls-Royce, and GE Aerospace. Hospitality and social events celebrated India’s cultural richness while providing opportunities for dialogue among stakeholders.

India’s Time on the Global Stage

The 81st IATA AGM and WATS positioned India not only as a rising aviation powerhouse but also as a symbol of how air transport could fuel national and global development. The event concluded with a renewed commitment to collaboration, innovation, and sustainability—setting the tone for the industry’s collective journey in the years ahead.

Turkish aviation was strongly represented at the IATA AGM in New Delhi by Ahmet Bolat, Chairman of Turkish Airlines; Bilal Ekşi, CEO of Turkish Airlines; Mehmet T. Nane, Chairperson of Pegasus Airlines; Güliz Öztürk, CEO of Pegasus Airlines; and Dr. Max Kownatzki, CEO of SunExpress.

LATAM Airlines to Host 82nd IATA AGM in Rio de Janeiro

At the close of the 81st IATA Annual General Meeting (AGM) in New Delhi, the International Air Transport Association announced that its 82nd AGM and World Air Transport Summit would be held in Rio de Janeiro, Brazil, in June 2026, with LATAM Airlines Group as the host airline.

The decision marked a symbolic return of the AGM to South America for the first time since 1999, when it was also hosted in Rio. Willie Walsh, IATA’s Director General, welcomed the move, noting: “It will be a great opportunity to take stock of changes over two decades of development that have seen strengthening air connectivity successfully support major world events like the FIFA World Cup and the Olympics. By meeting in the largest aviation market in South America, the AGM will highlight the great potential for aviation to be an even more powerful strategic force driving social and economic prosperity.”

LATAM’s Role and Vision

Roberto Alvo, CEO of LATAM Airlines Group, expressed pride in hosting the upcoming event: “LATAM is proud to host the IATA AGM in Brazil in 2026, the main market for our airline group connecting South America to the world. In addition to facilitating a successful gathering of our industry leaders, we look forward to showcasing the contributions and enormous potential for aviation in Brazil and throughout South America. We are confident that Rio de Janeiro, one of the most spectacular cities in the world with its unparalleled hospitality and beauty, will ensure a warm welcome and a memorable experience for all attendees.”

With 153 destinations across 27 countries, LATAM has become the largest airline group in Latin America. In 2024, the airline carried a record 82 million passengers, underscoring its expanding role in fleet modernization, regional connectivity, and environmental sustainability.

Brazil’s Aviation Legacy

Hosting the AGM in Rio carried symbolic significance beyond commercial aviation. Brazil holds a unique place in aviation history through the pioneering work of Alberto Santos-Dumont, celebrated as one of the fathers of flight. His landmark powered flight in 1906 stood as a milestone not only for Latin America but also for the advancement of global aviation.

Brazil previously welcomed IATA delegates in Petropolis in 1947 and in Rio de Janeiro in 1999. The 2026 edition therefore promised both continuity and a fresh perspective, as aviation leaders prepared to address the challenges and opportunities shaping the industry in the next decade.

Aviation at a Crossroads: Willie Walsh’s Industry Report at the 81st IATA AGM

Director General Willie Walsh delivered his annual report on the state of the airline industry. His address painted a picture of resilience and recovery, but also exposed persistent challenges in profitability, capacity, regulation, and sustainability.

The speech was not only a review of the numbers; it was also a call to action for governments, manufacturers, and industry partners to match airlines’ determination with their own commitments.

A Profitable Industry with Fragile Margins

Walsh began by acknowledging the industry’s renewed strength. Passenger numbers were set to surpass 5 billion annually, while air cargo — 69 million tons moved each year — continued to represent one-third of global trade by value. In 2025, airlines were forecast to generate $36 billion in net profit on $979 billion in revenue.

Yet behind these figures lay a sobering truth: profitability remained razor thin. Net margins stood at just 3.7%, equivalent to $7.20 profit per passenger. Compared to other industries, especially those within aviation’s own value chain, airlines continued to operate on significantly lower margins.

“Our profitability is not commensurate with the enormous value we create at the heart of a value chain supporting 3.9% of global GDP and 86.5 million jobs,” Walsh told delegates.

Safety: Maintaining Aviation’s Defining Standard

For Walsh, safety was not just a metric, but the very identity of aviation. He reminded attendees that flying remained the safest form of long-distance transport. In 2024, there were only seven fatal accidents across 40.6 million flights, resulting in 244 fatalities — a tragic figure, but one that underscored the sector’s extraordinary safety record.

The ultimate goal, however, remained zero accidents. Walsh urged greater use of data to identify risks before they materialize. IATA’s Global Aviation Data Management (GADM) system, IOSA safety audits, and the Turbulence Aware program were all highlighted as vital tools.

But Walsh also criticized governments for failing in their responsibilities. Less than half of accident investigations over the past six years had produced final reports. He also raised alarms over conflict zones, where civil aircraft had been targeted or caught in military crossfire. “The most effective way to protect aviation is through better information-sharing,” Walsh said, pointing to ICAO’s recent steps to embed security management systems into the Chicago Convention as a necessary move.

Affordability and Capacity: The Struggle to Meet Demand

Air travel had become far more accessible over the last decade, with real ticket prices dropping 40%. Yet Walsh warned of headwinds. Aircraft delivery delays, supply chain disruptions, and infrastructure bottlenecks were constraining the industry’s ability to meet growing demand.

The numbers told the story starkly:

• A 17,000-aircraft backlog, equating to a 14-year wait for delivery.

• Deliveries scheduled for 2025 were already 26% below manufacturer promises.

• Over 1,100 aircraft under 10 years old remained in storage.

“This hits revenues because some demand goes unmet. And scarcity pushes up maintenance and leasing costs,” Walsh said, sharply criticizing manufacturers. He insisted solutions must come faster, warning against allowing aerospace to be dragged into trade wars.

On infrastructure, Walsh praised progress in regions such as India, Vietnam, Morocco, Dubai, and Singapore, where governments were investing in airports and air traffic systems. Latin America, too, had launched major hub expansions. But Europe, he argued, remained a laggard.

The Single European Sky initiative, decades in the making, was still mired in political disputes. Worse, he accused the Dutch government of undermining competitiveness by attempting to shrink Schiphol Airport under the guise of noise reduction. “We must resist this short-sighted madness,” Walsh declared.

Regulation and Efficiency: Striking the Right Balance

Walsh argued that ineffective regulation was eroding affordability and competitiveness. He singled out the European EU261 compensation regime, which places financial responsibility for disruptions on airlines regardless of cause. After 20 years, he said, the rule had produced “lots of cost — EUR 5 billion annually — but no reduction in delays or cancellations.”

Beyond regulation, Walsh focused on the efficiency gains possible through digitalization. The rollout of Digital ID for passengers could eliminate document checks and streamline airport journeys, while the ONE Record standard for cargo promised real-time transparency across the supply chain. With its global launch set for January 2026, Walsh urged both industry adoption and government acceptance.

Sustainability: From Promises to Action

The most urgent part of Walsh’s speech centered on sustainability. He reaffirmed IATA’s commitment to net zero carbon emissions by 2050, but warned that progress was falling behind.

Sustainable Aviation Fuel (SAF), expected to contribute 65% of carbon reductions, remained in short supply. Production was set to double in 2025 but would still cover only 0.7% of global airline fuel demand. Walsh described the situation as unacceptable, blaming governments for weak policies and fuel suppliers for profiteering under mandates such as the EU’s.

“The EU mandate to mix 2% SAF in jet fuel raised costs but not production,” Walsh said. “It’s a billion-dollar windfall for fuel suppliers. This is the EU great green scam.”

He called for urgent government incentives, citing the need to replicate the success of U.S. tax credits that had spurred SAF investment. He also pressed energy companies to accelerate production and manufacturers to deliver more efficient technologies.

“Good intentions will not get us to net zero. Action is what we need,” Walsh insisted.

Airline Profitability to Strengthen Slightly in 2025 Despite Headwinds

IATA released its updated financial outlook for 2025 during the 81st Annual General Meeting in New Delhi. The report projected improved profitability for the global airline industry compared with 2024, underscoring both the sector’s resilience and the persistent headwinds shaping its future.

Financial Performance: Profits Hold, Margins Tighten

Airlines worldwide were expected to deliver $36.0 billion in net profits in 2025, up from $32.4 billion in 2024. The result, however, was slightly below the $36.6 billion forecast issued in December 2024. Net margins were anticipated to improve from 3.4% in 2024 to 3.7% in 2025, equating to just $7.20 profit per passenger segment.

Total industry revenues were projected to reach a historic high of $979 billion, with operating profits of $66 billion. Expenses, meanwhile, were expected to rise only modestly to $913 billion, aided by falling fuel prices. Jet fuel costs, averaging $86 per barrel, were down 13% from 2024, reducing the industry’s fuel bill by $25 billion.

“This is a strong result considering the headwinds,” said Willie Walsh, IATA’s Director General. “But let’s not forget that profitability remains about half the average across all industries. Airlines are earning $36 billion, but that’s still a razor-thin buffer.”

Demand Outlook: Record Passenger Numbers

Traveler numbers were projected to reach 4.99 billion in 2025, a record high, representing 4% growth over 2024. Passenger revenues were forecast to hit $693 billion, supported by $144 billion in ancillary revenues. Revenue Passenger Kilometers (RPKs) were expected to grow 5.8%, signaling a return to more normalized growth rates after the pandemic recovery surge.

Despite record volumes, yields were expected to fall 4%, reflecting competitive market dynamics and lower oil prices. The average real return airfare was expected to decline to $374 in 2025, 40% below 2014 levels.

Polling data revealed that travelers remained confident: 40% planned to travel more in the coming 12 months, while only 6% expected to travel less. Business travel, in particular, was expected to remain resilient despite ongoing trade tensions.

Cargo: A Sector Under Pressure

Air cargo revenues, by contrast, were forecast to fall to $142 billion in 2025, down 4.7% year-on-year. Weaker global GDP growth, projected at 2.5% in 2025 compared with 3.3% in 2024, alongside protectionist trade measures, were expected to dampen cargo demand.

Cargo volumes were anticipated to rise marginally to 69 million tonnes, while yields were expected to decline 5.2%. Walsh warned that prolonged trade disputes could further suppress demand.

Expenses: Fuel Relief, SAF Concerns

The industry’s single largest cost line — fuel — was expected to account for 25.8% of total operating costs in 2025. While lower oil prices offered relief, Walsh raised concerns over the escalating costs of Sustainable Aviation Fuel (SAF).

Production was set to double to 2 million tonnes in 2025, covering just 0.7% of total airline fuel needs. SAF prices, however, remained significantly higher than conventional jet fuel. IATA estimated that SAF would cost 4.2 times more than jet fuel in 2025, up from 3.1 times in 2024, adding $1.6 billion in additional costs.

Walsh criticized fuel suppliers, particularly in Europe, for what he described as profiteering: “The behavior of fuel suppliers in fulfilling SAF mandates is an outrage. They must stop profiteering and ramp up production to meet legitimate industry needs.”

Fleet and Supply Chain: A Bottleneck to Growth

Perhaps the most persistent challenge remained the supply chain. The global aircraft backlog now exceeded 17,000 units, implying a 14-year wait for delivery. In 2025, 1,692 aircraft were expected to be delivered — the highest since 2018, yet still 26% below year-ago estimates.

Compounding the problem, engine shortages and spare parts delays had grounded more than 1,100 aircraft under 10 years old, nearly three times the pre-pandemic level. Walsh did not mince words: “Manufacturers continue to let their airline customers down. Every airline is frustrated that these problems have persisted so long. Indications that it could take until the end of the decade to fix them are off-the-chart unacceptable.”

Risks on the Horizon

Despite cautious optimism, IATA identified several risks that could derail the 2025 outlook:

• Geopolitical conflicts: Resolution of wars could reopen markets, but escalation would harm demand and disrupt operations.

• Trade tensions: Protectionist measures threatened cargo demand and business travel.

• Fragmentation of standards: Weakening of multilateral frameworks could increase costs and complexity.

• Oil price volatility: External shocks could rapidly shift fuel costs, eroding profitability.

A Fragile Resilience

The 2025 outlook highlighted the paradox of global aviation: record revenues, record passengers, and yet only modest profitability. Airlines were poised to benefit from lower fuel costs and efficiency gains, but risks from trade disputes, weak supply chains, and inadequate SAF production remained acute.

Walsh’s message to policymakers was clear: “Perspective is critical. Airlines support 86.5 million jobs and 3.9% of global GDP. Yet we earn just $7.20 per passenger. Any new tax, charge, or regulation risks destabilizing this fragile resilience.”


Star Alliance - World’s Best Airline Alliance at 2025 Skytrax Awards
EGYPTAIR Discloses Order for an Additional Six Airbus A350 Aircraft
Turkish Airlines Resumes Flights to Misrata, Libya’s Third Largest City
Turkish Airlines and Airlink have Signed a Codeshare Agreement
Copyrights © 2019 All Rights Reserved by Aviation Turkey.