Trade tensions, political uncertainty dim air travel outlook; record traveller forecast trimmed

Iata said airline net profits are projected to be US$36 billion (S$46.4 billion) in 2025, up from US$32.4 billion in 2024. -- ST PHOTO: TARYN NG

NEW DELHI/SINGAPORE (The Straits Times/ANN): Trade tensions and a decline in consumer confidence amid political and economic uncertainty have dented otherwise strong projected demand for air travel.

While airlines are expected to carry a record 4.99 billion travellers in 2025 – 4 per cent more than in 2024 – the latest forecast is lower than the 5.22 billion projected by the International Air Transport Association (Iata) in December 2024.