Flying into Turbulence: Trade Barriers and Delivery Delays Threaten Air Travel Growth

The International Air Transport Association (IATA) sounded an alarm on Monday, expressing concerns that increasing trade barriers could hamper both the global economy and the air travel sector. IATA also highlighted "unacceptable" delays in plane deliveries, which are disrupting growth amid record passenger traffic. The headaches come as IATA scales back its 2025 profit projections due to trade tensions and declining consumer confidence.

Willie Walsh, Director General of IATA, emphasized the economic benefits of connectivity through air travel, contrasting it with the negative impact of isolationism and trade barriers. "These destroy wealth and lower living standards," he stated at IATA's annual meeting in New Delhi. Recent tariffs by U.S. President Donald Trump have intensified fears of a slowdown, particularly affecting consumer spending in the U.S. and aircraft trade agreements.

Despite recent setbacks, Walsh indicated that airlines remained committed to environmental sustainability, though progress is lacking in sustainable aviation fuel production. He reaffirmed the industry's target of achieving net-zero emissions by 2050, mainly by transitioning to sustainable aviation fuels. Delivery delays continue to plague the sector, with legal actions being considered unless manufacturers improve their performance.

(With inputs from agencies.)