A new report from aviation finance firm Avolon predicts that growth in the Asia-Pacific region will drive global airline revenue over the $1 trillion mark for the first time this year.

Released today, January 10, Avolon’s 2025 Outlook: Fast Forward was co-authored by Avolon’s chief risk officer Jim Morrison and senior vice-president for portfolio strategy Marc Tembleque.

Avolon chief executive Andy Cronin remarked:

“The aviation outlook for 2025 is robust, reflecting continued growth in travel demand against a backdrop of structural under-supply of new aircraft. Asia-Pacific will be the engine of that growth, and we anticipate global airline revenues will exceed the $1 trillion mark for the first time…”

Key Points of the Report:

• Growth in the Asia-Pacific will surpass all other regions combined in terms of new flight schedules.
• Lower oil prices in 2024 are expected to enhance airline profitability, offsetting increased maintenance and labor costs.
• A projected 16% increase in net profit to over $36 billion for the aviation sector in 2025.

Important Trends to Watch:

• Asia-Pacific is expected to recover pre-pandemic levels of profitability quicker than other regions.
• Major challenges in securing new aircraft will persist, pushing airlines towards lease extensions.

Seven Forecasts for 2025:

1. More seats added in Asia-Pacific than all other regions.
2. Major airline mergers agreed on each continent.
3. New aircraft deliveries expected to increase by 20%.
4. Narrowbody delivery slots in 2040 sold out.
5. Increased orders for the A330neo aircraft.
6. Chinese companies to order over 800 aircraft.
7. Upgrade in ratings for lessors due to improved credit strengths.

The aviation sector’s trajectory appears promising, with the Asia-Pacific region at its core.