Middle East airlines to be most...

IATA says region will lead growth and generate US$6.2 billion

Airlines in the Middle East are predicted to be the best performing globally in 2025, delivering 8.7% profit margin accounting for US$6.2 billion, according to the International Air Transport Association (IATA).

North America will generate the most profit with US$12.7 billion, but that is a margin of just 4%.

IATA says the Middle East will generate the highest net profit per passenger of all regions, with US$27.20, more than three times the global average. This compares to just US$11.1 in North America, US$8.9 in Europe and US$2.6 in Asia Pacific.

This prediction is backed by recent results from Middle East airlines, which enjoyed a record 2024, with a 9.4% traffic rise compared to 2023, and an even stronger start to 2025.

Qatar Airways Group posted profits of US$2.15 billion for the financial year, up 28%, while Dubai-based Emirates Group's profits surged 20% to US$5.8 billion for the financial year ending 31 March 2025, up 20% on the previous year, becoming the world’s most profitable airline.

Air Arabia also saw its profits soar by 34% in the first quarter of 2025, reaching US$91 million, and Etihad profits surged 30% in Q1 2025 to reach a record US$187 million.

However, while IATA recognises strong demand for business and leisure travel in the Middle East, it highlights delays in aircraft deliveries limiting capacity and growth.

Speaking at the opening of IATA’s AGM in New Delhi, Willie Walsh, IATA’s Director General, said aircraft manufacturers are “failing badly” and that the delivery backlog of 17,000 aircraft means a 14-year wait between order and delivery.

Dubai-based Emirates alone has more than 200 aircraft on order from Boeing and recently increased the number of aircraft undergoing retrofits to around 220.

Walsh also said deliveries scheduled for 2025 are 26% less than promised a year-ago and that the fleet replacement rate of 3% is half what it should be.

“The first half of 2025 has brought significant uncertainties to global markets,” said Walsh.

“Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections. We anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence.”

Travellers are also very satisfied, according to an April 2025 poll commissioned by IATA, with 97% saying they were satisfied with their travel, and 58% highly satisfied. Despite record profits, 78% of passengers said air travel is good value for money.

For more information, visit www.iata.org

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