Middle East carriers are poised to post the highest net profit margin globally in 2025, outpacing all other regions with a projected 8.7%, according to the International Air Transport Association (IATA).

Unveiled during IATA’s 81st Annual General Meeting in New Delhi, the forecast also shows that airlines in the region are expected to generate a net profit of $6.2 billion this year, a slight increase from $6.1 billion in 2024. The region is projected to earn $27.20 per passenger, the highest globally.

The strong performance reflects the region’s growing aviation footprint, supported by economic diversification strategies in Saudi Arabia and the UAE, where governments continue to invest in travel and tourism infrastructure.

“The Middle East will generate the highest net profit per passenger among the regions,” IATA noted in its report. “Robust economic performance is supporting strong air travel demand, both for business and leisure.”

However, the region’s capacity growth may face headwinds due to delays in new aircraft deliveries and ongoing fleet retrofit programs. In comparison, North American airlines are expected to earn $11.10 per passenger, followed by $8.90 in Europe, $3.40 in Latin America, $2.60 in Asia Pacific, and just $1.30 in Africa.

On a global scale, airlines are projected to post a net profit of $36 billion in 2025, up from $32.4 billion in 2024, though slightly below IATA’s earlier estimate of $36.6 billion.

Total industry revenue is forecasted at $979 billion, falling short of the $1 trillion mark due to macroeconomic headwinds and supply chain bottlenecks. IATA Director General Willie Walsh acknowledged the industry’s challenges but struck a cautiously optimistic tone, highlighting a 13% decline in jet fuel prices as a major boost.

While trade tensions and weakening consumer confidence have dampened earlier demand forecasts, Walsh expects airlines to deliver stronger results than in 2024.

Passenger revenue is expected to reach a record $693 billion in 2025, up 1.6% year-on-year, with traffic projected to grow 5.8%—a return to more typical levels following the post-pandemic surge. Operating profit is forecast to hit $66 billion, while overall expenses are expected to rise 1% to $913 billion.

The outlook for cargo is less optimistic. Revenues are projected to fall 4.7% to $142 billion amid sluggish global trade and rising protectionism. Cargo growth is set to slow sharply to 0.7%, down from 11.3% in 2024, while yields are expected to decline by 5.2%.

Despite these pressures, Walsh emphasized the industry’s resilience. “Our profitability is not commensurate with the enormous value that we create at the heart of a value chain supporting 3.9% of global GDP and providing and supporting jobs for 86.5 million people,” said Walsh.