CAPA Insights
Our Insight articles provide context and expert views on breaking news from across the industry. Drawing on CAPA's deep industry knowledge, our extensive databases and other resources, we go beyond the headlines to examine the background of key trending topics and consider the changing outlook. Our global team of analysts builds on the trending news with information critical for decision makers. Insight articles are available to all CAPA Members online or via our fully customisable Alerts.
Airlines could become a trillion dollar industry in 2025, but not without challenges along the way
The global airline industry is projected to achieve USD1 trillion in annual revenue for the first time in 2025, according to forecasts by IATA and Avolon.
Airlines are also forecast to deliver higher operating and net profits with improved margins, compared to 2024.
While operating conditions are generally favourable, airlines face several challenges such as ongoing aerospace supply chain problems, growth in non-fuel costs, operating restrictions due to conflict zones and growing pressure to achieve ambitious sustainability targets.
Ultimately, the financial performance of airlines in 2025 may be dictated by factors outside their direct control, most notably by the unpredictable path of fuel prices.
Middle East carriers show renewed confidence in Australian market
Australia's aviation industry was disproportionately impacted by the COVID-19 pandemic as compared to other countries. Recurring border closures, travel bubbles of varying success and strict entry requirements meant that air travel to Australia was extremely difficult prior to the border reopening in Feb-2022.
The Australian Competition and Consumer Commission (ACCC) reported airline capacity reached 6.2 million seats in Mar-2024, just about returning to Mar-2019 levels. After a long road to recovery, international carriers began restoring pre-pandemic service levels to Australia.
In 2024, the Middle East's three major carriers; Etihad Airways, Emirates Airline and Qatar Airways, (re)introduced several Australian services, increased frequencies on existing routes and invested into the future of Australian aviation.
Three new African carriers seeking to harness regional potential in 2025
The notoriously challenging African aviation landscape is a tough environment for new entrants to survive in, but each year brings fresh start-ups hoping to capture a piece of the region's massive untapped potential.
Here are three such projects to watch out for in 2025.
CAPA's top news of 2024 reveals broad range of reader interest
As we enter the new year, we take a look back at the news items from 2024 that received the most page views on the CAPA - Centre for Aviation website.
The results reveal readers' interest in a diverse range of topics, covering airport operations in the US, partnerships between European airlines, airport construction projects in Poland, an enigmatic start up carrier and biometric airport systems in India.
France's proposed aviation tax increase for 2025: The rise and fall
The French government proposed a significant increase to the airline ticket solidarity tax (TSBA) as part of its 2025 finance bill, aiming to generate EUR1 billion annually from 2025.
The proposal sparked widespread industry concern, with warnings it would harm France's global competitiveness, tourism, employment and sustainability investments, while creating distortions in the EU Single Aviation Market.
Air France-KLM projected severe financial impacts, while a Deloitte study highlighted the risks of job losses, lost tax revenue and weakened regional connectivity.
Amid mounting opposition from stakeholders, the measure was ultimately rejected by the French Parliament, leading airlines to suspend pre-emptive TSBA collections and issue refunds to affected passengers.
The debate underscored the challenges governments face in balancing fiscal objectives with economic and environmental sustainability in aviation.
Three key trends for aviation in 2025: Safety, supply chain and sustainability
The recent tragic events in Kazakhstan and South Korea have propelled safety back into the spotlight for the global airline industry.
Supply chain constraints remain a major impediment to airlines' ability to meet growing travel demand and modernise their fleets.
The path of fuel prices will be one of the most significant factors in determining airlines' financial performance in 2025, and the availability and cost of sustainable aviation fuel (SAF) will shape the industry's path towards its net zero goal.
Northern Europe's 2024 year in review: Restructuring, partnerships and strategic shifts
2024 was a busy year for Northern Europe's airline sector, marked by high profile acquisitions, significant restructuring efforts, strategic alliances, and policy shifts that will shape the industry's future.
Africa's 2024 year in review: Ethiopian Airlines continues ascent while chaos unfolds elsewhere
The African aviation landscape is never dull and 2024 was no different, as the continent experienced an eclectic blend of highs and lows.
LAC's 2024 year in review: Privatisation and restructuring at forefront while climate change hits
The Latin America and Caribbean (LAC) aviation industry was not short of drama in 2024, with privatisation, restructuring and climate change all dominating the news landscape.
2024 was a milestone year for aviation, but could have been even better
2024 was a historic year for the aviation industry, as global passenger traffic finally achieved a full recovery to pre-pandemic levels, supported by continued strong travel demand.
This strong demand coupled with restricted capacity drove higher load factors and impacted consumers in the form of higher airfares.
Airlines benefited from lower fuel prices, but non-fuel costs generally increased across the board.
These market dynamics are expected to help keep airline operating profits at historically high levels.
Supply chain issues remained a major restriction on industry growth throughout the year, headlined by aircraft delivery delays and significant additional engine maintenance requirements.
Airlines were particularly impacted by being unable to introduce new aircraft as planned, limiting their growth potential, increasing the average fleet age, hampering efforts to improve efficiency and cut emissions, and driving greater demand and costs for maintenance and aircraft leasing.
Service providers to airlines were among the major beneficiaries of the supply chain problems, with many lessors and MRO providers reporting high demand and record financial performance.