Why 2025 airline financial results may not be as rosy as last year's

Air Francelaunch of ''Elegance is a journey a cultural exhibition. [David Gichuru,Standard]

The aviation industry often reflects the broader state of the global economy. As such, it can serve as a bellwether; signaling either an impending upswing or forewarning of economic headwinds. Following the Covid-19 pandemic, the industry experienced a robust recovery, with international travel rebounding sharply.

According to International Air Transport Association (IATA) Director General Willie Walsh, “strong employment and easing inflation are expected to push airline revenues up to 1.3 per cent compared to last year”. However, despite this optimistic outlook, there are significant challenges that could temper the industry’s performance in 2025. Two in particular may affect the global aviation industry this year.