IATA AGM ends with calls for growth, safety and sustainability in aviation

While addressing the global airline conference on Monday, Prime Minister Narendra Modi emphasised India's commitment to becoming a global aviation and innovation hub

The International Air Transport Association’s (IATA) 81st Annual General Meeting (AGM) concluded in New Delhi on Tuesday. Global aviation leaders gathered for the three-day event, held from June 1 to 3, to discuss the industry's direction amid economic, geopolitical and environmental headwinds.

 

This was the first time in 42 years that India hosted the IATA AGM, the previous event taking place in 1983.

 

India’s aviation ambitions highlighted by PM Modi 

Speaking at the conference on Monday, Prime Minister Narendra Modi reiterated India's commitment to becoming a global hub for aviation and innovation. He emphasised the continuous expansion of India’s civil aviation sector.

   

“By 2030, the number of air travellers in the country is expected to double from 24 crore to nearly 50 crore annually,” he said.

 

Highlighting the sector’s investment potential, he added: “India’s aviation sector is a key player in the global air transport industry... India offers an excellent investment opportunity in the aviation sector for global companies.”

 

Modi also outlined government efforts to position India as a global manufacturing base, noting: “MRO is emerging as a sunrise sector; the target is to make India a global MRO hub by 2030.” 

 

Industry outlook: Profits rise, risks persist 

IATA Director General Willie Walsh shared a forecast for global airline profits, estimating they will reach $36 billion in 2025. He called the projection “a strong result” despite economic and geopolitical turbulence.

 

“Considering the headwinds, it’s a strong result that demonstrates the resilience that airlines have worked hard to fortify,” Walsh said.

 

However, he cautioned that new taxes, rising charges, demand shocks or onerous regulations could strain the industry. “Any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test,” he warned.

 

On India’s regulatory landscape, Walsh stated, “The taxation system in India is complex and there needs to be greater certainty.”

 

Sustainability: SAF progress too slow, says Walsh 

The AGM also focused on sustainability, particularly the ramp-up of Sustainable Aviation Fuel (SAF) production. While SAF output is expected to double to 2 million tonnes in 2025, Walsh said this would still meet only 0.7 per cent of aviation’s total fuel needs.

 

“Even that relatively small amount will add $4.4 billion globally to the fuel bill,” he added. “The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.”

 

Safety and conflict risks dominate operational concerns 

Nick Careen, IATA’s Senior Vice President of Operations, Safety and Security, said that although the industry carried more than 5 billion passengers in 2024, hidden challenges continue to affect operations. These include global engine shortages, GPS jamming and managing airspace amid active conflict zones.

 

IATA reported that over 1,100 aircraft are grounded, with 69 per cent linked to a single engine type. Additionally, the Eurocontrol region saw 1,100 daily flight reroutes in 2024 due to conflict zones, contributing to higher fuel use, emissions and operational costs.

 

Two aircraft were downed in conflict zones during the year, further underlining the safety and financial implications of geopolitical instability.