Monday, June 2, 2025 – The global aviation industry is facing mounting challenges as growing trade barriers and persistent aircraft delivery delays threaten expansion plans, despite record-breaking passenger numbers. The International Air Transport Association (IATA) has warned that restrictive trade policies and supply chain issues could hinder the sector’s ability to sustain growth and meet rising demand.
Trade Restrictions and Economic Impact
IATA Director General Willie Walsh expressed concerns about escalating trade tensions, stating that “the imposition of trade barriers threatens economic stability and limits the ability of airlines to connect markets efficiently. Aviation is a driver of global commerce, and any disruptions to international trade have ripple effects across the industry.”
With declining consumer confidence and uncertainty surrounding global commerce, IATA has adjusted its 2025 industry-wide profit forecast downward. Walsh highlighted that geopolitical and economic challenges are placing additional strain on airlines at a time when demand for international travel remains exceptionally high.
Aircraft Supply Chain Issues Stall Growth
Despite passenger numbers reaching record levels, airlines are struggling with significant aircraft delivery delays. Industry leaders have criticized manufacturers for failing to meet commitments, describing the delays as “inexcusable” and “unacceptable.” Walsh emphasized the frustration felt by airlines, noting that “carriers need reliable fleet expansion to meet growing demand, yet ongoing supply chain constraints are restricting capacity and operational efficiency.”
Sustainability and Industry Resilience
In addition to fleet challenges, IATA has urged energy firms to scale up production of sustainable aviation fuel (SAF) to help the industry meet environmental goals. Walsh reiterated that “sustainable aviation fuel is critical to achieving carbon reduction targets, and increased production capacity is essential for airlines to maintain long-term growth while reducing their environmental footprint.”
Despite these obstacles, the aviation sector remains committed to adapting to market shifts and securing the resources necessary for continued expansion. Industry executives are focused on overcoming trade barriers, addressing logistical bottlenecks, and ensuring stable operations in a rapidly evolving global landscape.
IATA Director General Willie Walsh Picture by ERIC CECH | Credit Natalia Mroz for IATA
