By Nandan Mandayam, Shivansh Tiwary and Rajesh Kumar Singh
NEW DELHI (Reuters) – Airlines warned on Monday that growing trade barriers risked damaging the global economy and pledged to resist efforts by manufacturers to pass on tariffs as higher prices for aircraft.
Airline bosses also complained that “unacceptable” aircraft delays were dampening growth at a time of record passenger numbers, as the International Air Transport Association shaved a key forecast for 2025 industry-wide profits.
“Like all forms of connectivity, flying makes the world more prosperous,” IATA Director General Willie Walsh said at the group's annual meeting in New Delhi.
“That stands in contrast to isolationism, trade barriers and the fragmentation of the multilateral rules-based system. These destroy wealth and lower living standards. For the times we live in, this is an important message,” he said.
Sweeping tariffs imposed by U.S. President Donald Trump have stoked fears of an economic slowdown and squeezed discretionary spending, prompting many consumers especially in the United States to delay or scale back travel plans.
“The consumer is uncertain,” said JetBlue Airways CEO Joanna Geraghty.
IATA now expects global airlines to make a combined profit of $36.0 billion this year, down from a previous forecast of $36.6 billion in December, but up from $32.4 billion last year.
Walsh said there was no evidence so far that aircraft prices had increased due to tariffs, but that airlines would resist any attempt to charge more.
Engine maker GE Aerospace and several other aerospace groups have said they are passing on tariff costs in a surcharge.
IATA represents some 300 airlines and 80% of global traffic.
DELIVERY DELAYS
More people are flying than ever before after a post-pandemic passenger market recovery, but airline growth is being hampered by extended delivery delays and supply bottlenecks.
Walsh called predictions of aircraft delivery delays throughout this decade “off-the-chart unacceptable”.
He said the airline industry was evaluating legal options over the delays, but preferred to work with manufacturers.
“The manufacturing sector is failing badly,” he said.
Planemakers Airbus and Boeing had no immediate comment.
IATA said the number of deliveries scheduled for 2025 was 26% fewer than promised a year ago.
“Delays are becoming inexcusable. Transparency, to be frank, is lacking, and we're getting agitated,” Airbus customer Steven Greenway, CEO of Saudi budget carrier flyadeal, told Reuters.
