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Global airlines forecast 2025 growth despite 'unacceptable' supply chain issues
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Global airlines forecast 2025 growth despite 'unacceptable' supply chain issues
Dec 10, 2024 3:35 AM

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Industry revenues top $1 trillion for first time

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IATA head slams aviation suppliers for bottlenecks

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Says Trump to be 'net positive' for industry

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Post-pandemic recovery continues fuelled by strong demand

(Recasts headline and lead, adds Walsh in paragraphs 3-5)

By Emma Farge and Joanna Plucinska

GENEVA, Dec 10 (Reuters) - Global airline body IATA

forecast industry-wide 2025 revenue of more than a trillion

dollars and record passenger numbers on Tuesday, despite what

its chief Willie Walsh said were "unacceptable" difficulties in

securing new planes.

Airlines around the world have seen their growth hampered by

problems at Boeing ( BA ) and Airbus which have delayed

jet deliveries. Without newer, more efficient planes, airlines

say they cannot cut back fuel costs while flying more people.

"We've given them time. I think our patience has run out.

The situation is unacceptable," International Air Transport

Association (IATA) head Walsh told reporters in Geneva.

Walsh said suppliers were acting like "quasi-monopolies" and

appeared to be benefiting from the problems they had caused.

"We're going to have to ramp up the pressure and maybe look

for support to force key suppliers to get their act together,"

said Walsh, who was previously head of British Airways and its

parent company IAG.

Despite the problems, IATA said it expected the industry to

generate 36.6 billion dollars of net profit in 2025, up from

31.5 billion dollars in expected net profit in 2024, with a

record 5.2 billion passengers set to fly.

That comes four years after the industry collapsed to a $140

billion loss in 2020 as a result of the COVID-19 pandemic, but

which has recovered thanks to robust travel demand.

Jet fuel prices are also set to fall, offering some relief.

Walsh was upbeat about the second term of U.S.

President-elect Donald Trump, saying that his actions in his

first term had boosted the sector.

"The indication is that the second Trump administration is

likely to reverse some of the actions that were taken under the

(Joe) Biden administration," he said.

"I would see the Trump administration as being a net

positive for the industry," he added.

However, uncertainty tied to conflicts in the Middle East

and Ukraine could pose risks to the sector's health, said IATA,

which expects 2025 passenger yields, the average amount paid by

a passenger to fly one mile, to fall by 3.4% versus 2024.

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