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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.