Middle East airlines to lead global profit margins in 2025, IATA says 

The region is also expected to earn $27.20 per passenger. Shutterstock
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Updated 02 June 2025
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Middle East airlines to lead global profit margins in 2025, IATA says 

  • Global airlines are projected to record a net profit of $36 billion, with total industry revenue reaching $979 billion
  • Saudi Arabia and the UAE continue to bolster the industry as part of their economic diversification efforts

NEW DELHI: Middle East airlines are forecast to post the world’s highest net profit margin in 2025 of 8.7 percent, outpacing global peers, according to the latest industry report. 

The forecast, released by the International Air Transport Association during its 81st Annual General Meeting in New Delhi, also projects that airlines operating in the Middle East will generate a net profit of $6.2 billion this year — slightly up from $6.1 billion in 2024. The region is also expected to earn $27.20 per passenger.

Globally, airlines are projected to record a net profit of $36 billion, with total industry revenue reaching $979 billion — below IATA’s earlier $1 trillion estimate, due in part to macroeconomic uncertainties and supply constraints. 

The growth of the aviation sector in the Middle East reflects broader regional expansion, as countries such as Saudi Arabia and the UAE continue to bolster the industry as part of their economic diversification efforts. 




IATA Director General Willie Walsh said the first half of 2025 has brought notable uncertainty to global markets. Screenshot

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

It added: “However, with delays in aircraft delivery, the region will see limitations in capacity as airlines embark on retrofit projects to modernize their fleet, hence limiting growth.” 

According to IATA, revenue per passenger in 2025 is expected to reach $11.10 in North America, followed by $8.90 in Europe, $3.40 in Latin America, $2.60 in Asia Pacific, and $1.30 in Africa.

Global outlook 

While airlines globally are expected to earn a collective $36 billion in profit in 2025, up from $32.4 billion in 2024, the figure is slightly below the $36.6 billion projected in December. The average net profit per passenger remains modest at $7.20, according to IATA. 

IATA Director General Willie Walsh said the first half of 2025 has brought notable uncertainty to global markets. Still, he noted, airline performance is expected to surpass 2024 levels, though it will fall slightly short of earlier forecasts. 




IATA Director General Willie Walsh emphasized the importance of sustainability in aviation, urging the sector to leverage all available decarbonization tools. Screenshot

“The biggest positive driver is the price of jet fuel which has fallen 13 percent compared with 2024 and 1 percent below previous estimates,” he said. 

Walsh added: “Moreover, we anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence.” 

He noted that considering the headwinds, this is a strong result that “demonstrates the resilience that airlines have worked hard to fortify.” 

Operating profit for global airlines is expected to reach $66 billion in 2025, up from $61.9 billion the previous year. Total expenses are projected at $913 billion in 2025, marking a 1 percent increase from 2024. 

“Our profitability is not commensurate to the enormous value that we create at the heart of a value chain supporting 3.9 percent of global GDP and providing and supporting jobs for 86.5 million people,” said Walsh. 

Passenger revenue in 2025 is expected to increase by 1.6 percent year on year to reach an all-time high of $693 billion. 

Passenger growth, measured in revenue passenger km, is projected at 5.8 percent — a normalization following the double-digit growth during the pandemic recovery. 

Cargo revenues are expected to decline by 4.7 percent to $142 billion in 2025, driven by sluggish global economic growth and trade-dampening protectionist measures, including tariffs. 

Air cargo growth is expected to slow to 0.7 percent in 2025 from 11.3 percent in 2024. Cargo yield is also projected to decline by 5.2 percent, reflecting slower demand growth and lower oil prices. 

Fleet and backlog issue 

The IATA director general criticized aircraft manufacturers for long delivery backlogs, noting that more than 17,000 aircraft are on order, with wait times of up to 14 years, stalling growth opportunities across regions. 

“The number of deliveries scheduled for 2025 is 26 percent less than what was promised a year ago,” said Walsh. 

He warned that the backlog will negatively impact revenues as demand remains unmet, while scarcity drives up maintenance and leasing costs. 




Operating profit for global airlines is expected to reach $66 billion in 2025, up from $61.9 billion the previous year. Screenshot

“It’s just not acceptable that manufacturers estimate it could take until the end of the decade to sort this mess out,” said Walsh. 

Walsh also highlighted recent infrastructure advancements, including the opening of new secondary airports in New Delhi and Mumbai, and the phased launch of the world’s largest airport in Dubai. 

“Governments around the world are building a competitive future for aviation because they want aviation to contribute even more to their societies and economies,” added Walsh. 

Sustainability and SAF 

Walsh also emphasized the importance of sustainability in aviation, urging the sector to leverage all available decarbonization tools.

He called for global cooperation to advance decarbonization efforts.

IATA reported that sustainable aviation fuel production is expected to double in 2025 to 2 million tonnes — still only 0.7 percent of total industry fuel usage. 

The average cost of SAF in 2024 was 3.1 times higher than jet fuel, adding $1.6 billion in costs. 

In 2025, SAF is expected to cost 4.2 times more than jet fuel, primarily due to “compliance fees” levied by European fuel suppliers to hedge against the cost of meeting a 2 percent SAF mandate in jet fuel supplies. 

“The behavior of fuel suppliers in fulfilling the SAF mandates is an outrage. The cost of achieving net-zero carbon emissions by 2050 is estimated to be an enormous $4.7 trillion,” said Walsh. 

He added: “Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.” 

Walsh added that under the Carbon Offsetting and Reduction Scheme for International Aviation, airlines are expected to face a $1 billion cost in 2025. 

Under CORSIA, operators must purchase and cancel emissions units to offset increases in CO2 emissions. 

“CORSIA must be successful. It is a credible and verifiable system that requires carbon credits of only the highest standard, making its positive impact on climate unquestionable,” said Walsh. 


Saudi Arabia’s Red Sea dolphins signal a thriving marine environment

Updated 30 January 2026
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Saudi Arabia’s Red Sea dolphins signal a thriving marine environment

  • Long-term monitoring aims to turn observations into data for conservation

JEDDAH: The waters of the Red Sea along Saudi Arabia’s coast have become a vibrant natural stage, with pods of dolphins appearing near shorelines and along shipping lanes. These captivating sightings are emerging as a positive indicator for the health of the Red Sea’s marine ecosystem.

Saudi Arabia’s Red Sea waters are a thriving sanctuary for marine life, hosting 12 species of dolphins and small whales, according to the National Center for Wildlife.

Nearshore and reef-adjacent waters are frequently visited by the Indo-Pacific bottlenose dolphin (Tursiops aduncus) and the spinner dolphin (Stenella longirostris). Common bottlenose dolphins (Tursiops truncatus) are also present, but tend to favor deeper offshore waters.

Beyond these familiar faces, the Red Sea is home to a wider array of cetaceans that are less often documented. These include the Indo-Pacific humpback dolphin (Sousa plumbea), which inhabits shallow coastal areas, the pantropical spotted dolphin (Stenella attenuata), Risso’s dolphin (Grampus griseus), and larger relatives such as the false killer whale (Pseudorca crassidens), which may be more common than sightings suggest. Rare visitors like killer whales (Orcinus orca) and offshore species such as the rough-toothed dolphin (Steno bredanensis), striped dolphin (Stenella coeruleoalba), long-beaked common dolphin (Delphinus capensis), and short-finned pilot whale (Globicephala macrorhynchus) are known to appear sporadically but require documented evidence for confirmation.

DID YOU KNOW?

Pods of dolphins are regularly spotted near shorelines and shipping lanes along Saudi Arabia’s Red Sea coast.

Reef-enclosed lagoons and sheltered nearshore waters serve as resting and social hubs for dolphins.

Human activities, including fisheries, coastal development and vessel traffic, can disrupt dolphin behavior.

Field identification is made easier by distinct physical traits. Indo-Pacific bottlenose dolphins are smaller and more slender than their common bottlenose cousins, while spinner dolphins are streamlined with a pronounced beak. Risso’s dolphins are stockier with blunt heads, often marked with noticeable scars. Indo-Pacific humpback dolphins remain close to shallow, sometimes murky, shorelines, making them challenging to document without dedicated surveys.

Researchers at KAUST emphasized the importance of ongoing conservation to maintain the Red Sea’s ecological balance. Research scientist Jesse Cochran told Arab News: “For Saudi waters, the biggest challenge is that we still don’t have the kind of long-term, standardized monitoring needed to estimate population sizes or trends confidently. We have important observations and some targeted surveys, but the baseline is still developing.”

Another research scientist, Royale Hardenstine, highlighted the need for broader coordination: “What we need most right now is connectivity across efforts. There are good observations in specific project areas, but without a shared framework and a broader network, it’s hard to turn those observations into coast-wide inferences about residency, movements, or trends.”

Dolphins are frequently seen in reef-enclosed lagoons and sheltered nearshore waters, where they rest and socialize. These locations are often predictable, as reef structures reduce wave action and currents, creating calm conditions favorable to dolphin behavior.

Christy Judd, a Ph.D. student at KAUST, noted: “Some reef-bounded lagoons appear to be used repeatedly as resting areas. These places matter because they offer shelter and calm conditions, not because they’re automatically the highest biodiversity sites.”

While dolphins sometimes feed and socialize near coral reefs, Prof. Michael Berumen explained that their ecological range extends well beyond reef systems. Dolphin activity in the Red Sea spans a wide seascape that includes open waters, channels, continental shelf edges, and coastal zones.

He said that reefs shape resting areas and can concentrate prey. Experts, however, caution against linking dolphin presence directly to reef health.

Hardenstine elaborated: “Where dolphins and reefs overlap, it’s often because reef structures create sheltered lagoons and predictable resting areas.”

Dolphin group sizes in the Red Sea vary by species and activity. Bottlenose and spinner dolphins may form large aggregations exceeding 100 individuals during social interactions or when moving through food-rich waters.

In contrast, Indo-Pacific humpback dolphins are more often observed in small groups. Mixed-species associations also occur: Indo-Pacific humpback dolphins may interact with bottlenose dolphins, and pantropical spotted dolphins frequently accompany spinner dolphins.

From left: Dr. Michael Berumen, Christy Judd, Royale Hardenstine and Jesse Cochran. (KAUST)

Berumen described these social dynamics: “Dolphin societies are typically dynamic, with groups that form and re-form over time (often described as ‘fission-fusion’ social structure). Individuals associate for feeding, travel, resting, and social interactions, and alliances can form, particularly in some bottlenose populations.”

Judd added a field perspective: “Calves are usually integrated into the pod’s normal behavior, but groups with calves can be more cautious, especially around disturbance.”

Seasonal patterns in dolphin distribution remain unclear. Hardenstine noted: “In Saudi waters seasonal patterns, if they exist, are not yet well-resolved because sighting data are often influenced by survey effort, weather, and where people are looking.”

Dolphins respond to prey availability, water temperature, and oceanographic features such as currents and productive zones. Cochran cautioned: “We expect environment and prey to influence where dolphins are seen, but data limitations mean we should treat seasonal conclusions as provisional until long-term monitoring is in place.”

Human activities pose additional pressures. Dolphins face risks from fisheries, occasional bycatch, coastal development, tourism, vessel traffic, and underwater noise. While the Red Sea does not experience the intensive industrial fishing seen in other regions, interactions with fisheries can displace dolphins or disrupt the marine food web. Vessel traffic can disturb resting behavior and increase stress.

Berumen explained: “Vessels can affect dolphin behavior by causing avoidance of certain areas, interrupting resting behavior, altering movement patterns, and increasing stress, particularly in areas where dolphins rest in sheltered lagoons.”

Hardenstine added: “While data related to these impacts in the Red Sea are sparse, some anthropogenic pressures are increasing throughout the region. This is exactly when collaborative monitoring and scientifically informed mitigation become most valuable.”

KAUST researchers study dolphins as part of broader ecosystem and megafauna monitoring, combining reef surveys, opportunistic sightings, and targeted research. The university collaborates closely with the Saudi Arabia’s National Center for Wildlife to develop a national marine mammal stranding network, assisting with identification, sampling, and necropsies when needed. Collaborative efforts with NCW and OceanX have also supported aerial surveys documenting Red Sea megafauna.

Cochran emphasized the goal: “The most responsible next step is building long-term monitoring that is coordinated between stakeholders nationally, so that observations turn into defensible data that can identify trends and guide conservation actions or policy.”