Leading airlines have issued a stark warning that increasing trade barriers threaten to damage the global economy, while pledging to resist any attempts by manufacturers to pass on tariffs as higher prices for aircraft.
The International Air Transport Association, representing over 80% of global air traffic, highlighted concerns that growing protectionism and tariff disputes could undermine economic growth and the aviation sector’s recovery. IATA Director General, Willie Walsh, emphasised that trade restrictions eroded wealth and reduced living standards, counteracting the benefits of global connectivity.
In addition to trade concerns, airline executives criticised “unacceptable” delays in aircraft deliveries, which are hampering expansion plans despite record passenger numbers worldwide. These supply chain issues have contributed to IATA revising down its forecast for industry-wide profits in 2025.
Walsh urged governments to exclude aerospace from ongoing trade conflicts and warned that tariffs risked undermining a long-standing international agreement to eliminate duties on aircraft and components. While there is no current evidence that tariffs have forced up aircraft prices, airlines remain determined to resist any such cost increases.
The combination of trade tensions, supply chain disruptions, and weakening consumer confidence has prompted IATA to lower its profit outlook for the coming year, signalling challenges ahead for the aviation industry.
