Mideast airlines to deliver industry’s highest profit margins in 2025
The region's airlines are forecast to hit a profit margin of 8.7% in 2025, slightly lower than last year's figure of 8.9% but the highest in the industry.
Middle Eastern airlines are forecast to have the highest profit margins this year, reaching 8.7% amid a dampened global outlook for commercial aviation, according to the International Air Transport Association.
The forecast, released at the IATA's 81st Annual General Meeting in New Delhi on Monday, projects that Middle Eastern airlines will hit a net profit of $6.2 billion in 2025, up from $6.1 billion in 2024. The Middle East is also expected to earn around $27.20 per passenger, said the IATA, an industry body that represents around 350 airlines.
Why it matters: The region’s forecasted 8.7% profit margin is much higher than the global average of only 3.7% and far higher than that of African airlines, which have the weakest net profit margin globally of only 1.3%.
The IATA explained Middle Eastern airlines’ high performance in its report, which reads, “Robust economic performance is supporting strong air travel demand, both for business and leisure travel,” and “However, with delays in aircraft delivery, the region will see limitations in capacity as airlines embark on retrofit projects to modernize their fleet, hence limiting growth.”
