GENEVA, Switzerland -- Airlines worldwide will realize a cumulative net profit of $39.5 billion this year, according to a forecast released Dec. 9 by airline trade group IATA.
The figure is up from IATA's June estimate of $36 billion, due largely to better-than-expected results in cargo and the weakening of the U.S. dollar, which benefits most airlines, IATA director general Willie Walsh said during the trade group's global media day.
For North American airlines, net income this year will be an estimated $10.8 billion, which equates to a net margin of 3.3% and $9.50 of profit per passenger.
The North America figures are weaker than IATA's estimated global net profit margin of 3.9% for this year and its estimated global profit per passenger of $7.90. They're also lower than last year's North American results of $11.5 billion of net income with $10.10 profit per passenger.
"The United States suffered stagnating overall growth and domestic market contraction in the face of policy uncertainty around tariffs, tighter immigration enforcement dampening both inbound and domestic travel, and a lengthy government shutdown," IATA said in a written analysis.
Europe will overtake North America's long-held position as the region generating the most airline industry profit this year, with expected net income of $13.2 billion.
Overall, the airline industry will bring in $1.01 trillion in revenue this year, it's first time topping the $1 trillion mark according to the IATA forecast.
Looking ahead, IATA expects global airline net income to reach $41 billion next year, with the profit margin holding steady at 3.9%. North American airlines are forecast for $11.3 billion in net income.
Also, a record industrywide load factor of 83.8% is expected in 2026.
Walsh complained that airline profits continue to be impacted by supply-chain constraints. An aircraft delivery backlog of 17,300 planes amounts to more than 60% of planes currently flying.
He pointed a finger at aircraft engine manufacturers, accusing them of using supply problems to increase their profits and said IATA is exploring whether there are grounds for legal action related to competition laws.
"This is unacceptable and it's going to stop," he said.
He noted that engine maker GE Aerospace reported a profit margin of 27.6% for the first nine months of this year.
Travel Weekly reached out to GE Aerospace for comment.