Global airlines are warning of turbulent times ahead as rising trade barriers and geopolitical tensions threaten to derail the aviation sector’s recovery and broader economic growth.
The International Air Transport Association (IATA), which represents more than 80% of global air traffic, has cautioned that growing protectionist policies and tariff disputes are eroding the benefits of international trade and connectivity.
“Trade restrictions do not protect economies—they weaken them,” said IATA Director General Willie Walsh. “They reduce living standards, suppress innovation, and undermine the global cooperation needed for aviation and other sectors to thrive.”
Alongside concerns over trade, airlines also voiced frustration over persistent delays in aircraft deliveries, which are slowing fleet expansion despite soaring passenger demand. These bottlenecks have forced IATA to downgrade its forecast for industry-wide profits in 2025.
Airline executives were particularly critical of any attempt by aircraft manufacturers to pass on tariff-related costs. While there is currently no direct evidence that tariffs are inflating aircraft prices, Walsh warned that such a development would violate longstanding international agreements designed to keep aircraft and component trade duty-free.
“We urge governments to keep aerospace out of escalating trade disputes,” said Walsh. “Tariffs would set a dangerous precedent and add avoidable costs to an industry already under pressure.”
With supply chains under strain, trade tensions on the rise, and consumer confidence wavering, the aviation industry is bracing for a more challenging year ahead—despite a strong rebound in global air travel.
