IATA forecasts positive outlook for global airline industry in 2025
The global airline industry in 2025 expects a slight increase in profitability amid ongoing cost and supply chain challenges, the International Air Transport Association (IATA) said
Carsten Spohr, CEO of Germany’s flagship airline Lufthansa, has warned about the risks to the country’s aviation industry from rising government-imposed costs and new regulations.
They are making it increasingly difficult for airlines to operate, he added.
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In a recent interview with the German newspaper Bild am Sonntag, Spohr criticized politicians for implementing new rules that are putting strain on airlines, saying, “I am very concerned about the connectivity of (Germany as a) business location.”
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“The extreme increase in government-imposed costs on air transport is leading to a further shrinking supply. More and more airlines are avoiding German airports or cancelling important connections,” he said.
Several carriers, such as Ryanair and Lufthansa’s subsidiary Eurowings, have recently announced significant flight reductions, blaming high airport and aviation security fees in Germany, Xinhua news agency reported.
For months, Germany’s aviation sector has been vocal about its struggles with increasing costs. Ryanair has pointed to the increased aviation tax introduced in May, arguing that it has made low-cost flights unsustainable.
Spohr also expressed concern about upcoming regulations, such as a blending quota for e-fuels, noting that “these fuels are not yet available in sufficient quantities.”
“As a result, the quality of (Germany’s) connectivity to many important economic regions is declining compared to other countries,” he said.
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