dailynewsnblog
Latest data from IATA shows that the global aviation industry, for the first time, is set to achieve over one trillion US dollars in revenue this year, and data forecasts indicate that the industry is expected to continue growing in the coming years.
The industry data also shows that different regions will be growing at a considerable rate in the coming years, as airlines continue to experience record-high load factors and fleet utilization, while also expecting to achieve record-high profits in the following years.
Surpassing $1 Trillion In Revenue
The latest data published by the international air transport association (IATA) shows that the global aviation industry, for the first time, is set to surpass $1 trillion in revenue this year, marking a 4% growth from 2024 when the industry recorded $996 billion in overall revenue. The growth is set to continue as the forecasts created from the data show that the industry is expected to record a further 4.5% growth and achieve $1.053 trillion in 2026 (up from 1.008 trillion this year).
In line with the revenue growth, the industry is also recording growth in the Net Profit, with the numbers showing the industry achieving $30.5 billion in 2024, $39.5 billion expected in 2025, and up to $41 billion in profits forecasted for 2026. This marks a 34.4% increase from 2024 and about 3.8% growth from 2025. The growth in revenue and profits for 2026 is based on the 2.6% growth projected on the air cargo side, while the passenger traffic is expected to grow by 4.9% (in terms of RPK).
The growth recorded for this year and forecast for 2026 shows the resilience and strength of the aviation sector as a whole, because not only did the industry bounce back from the market shock of the COVID-19 Pandemic, but aviation has continued growing despite the global disruptions it has faced due to natural disasters, political unrest, supply chain issues, labor shortages, and more. The IATA report states,
“Resilient traffic growth, together with stable yields should allow the industry to top the USD 1trillion revenues for the first time in 2025.”
Cirium Predicts 46,500 New Aircraft Deliveries Over Next Two Decades
The fleet forecast data shows 46,500 new aircraft being delivered to airlines worldwide by 2044, valued at $3.4 trillion.
Growing Passenger Numbers & Cargo Traffic
As mentioned above, passenger numbers are expected to continue growing in 2026, with data showing the passenger numbers expected to reach 5.2 billion in 2026, marking a 4.4% increase from the 2025 figures, while the cargo sector is forecasted to achieve 71.6 million tonnes in 2026, which is 2.4% higher than this year.
Overall, this data indicates the expected average load factor in 2026 to be 83.8%. For context, the average industry load factor recorded in 2019 was 82.6%. Further data indicates that the Asia Pacific region will be the largest contributor to the growth of global traffic, with an all-time-high load factor of up to 84.4% expected to be achieved. While major regions such as China have been affected in terms of exports and connectivity to the US, an improvement in connectivity and trade was achieved in alternative markets such as India and South Korea.
However, it is worth noting that the data shows the Return On Invested Capital (ROIC) of the industry is expected to remain unchanged from the 2025 figure of 6.8%.
Record High Profits Expected
The expected profit will essentially be derived from the record revenue, which can be split into three categories, with passenger ticket revenue accounting for $751 billion out of the $1.05 trillion expected in 2026. The remaining revenue is split into $158 billion accounting for cargo revenue, while ancillary and other revenue streams account for the remaining $145 billion.
Forecasts for next year indicate that the industry is expected to achieve profits of $41 billion, with a net margin of 3.9% which is not expected to change from this year. However, different markets and regions contribute to this differently. Data shows that Europe is expected to deliver the highest net profit, while the booming region of the Middle East will see the highest profit margins in the industry.
However, in terms of market growth, the largest and most rapid growth is expected to be experienced in the Asia Pacific region, while the South American region is also expected to show improvements. Furthermore, despite the North American domestic market seeing stagnating demand, it will still play a considerable role in the industry’s profitability, considering the size of the market and the competition in the region.
