Rising Costs, Supply Strains, Weakening Demand: Airlines Face New Challenges
The airline industry's resilience in the post-pandemic period is being tested by a restructuring of the global economy.
At the end of 2024, we released our forecasts for the year ahead and the key themes we thought would drive change in the travel industry in our Global Travel Outlook 2025. Nearly five months into 2025, we revisit those trends in Skift Research’s latest report, Turbulence and Tailwinds: Shifting Trends in the Airline Industry, given the current economic instability and global uncertainties, including tariffs imposed by the U.S. government.
Key Themes for 2025Updated CommentarySupply chains remain a major concern for the industryWill likely worsen as the global airline industry navigates the economics of tariffsRecord passenger revenues for the industry, along with record profitabilityRevenue growth will be lower than projected but profitability will stickPremium demand to stay strongPremium has shown remarkable resilience and it will likely stay strongMore airline consolidationEconomic uncertainties and weak financial he
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