US tariffs unlikely to slow post-COVID travel boom, says IATA chief

The head of IATA downplayed concerns that potential US trade tariffs would disrupt the ongoing surge in travel demand. While acknowledging added uncertainty, he suggested that Trump’s policies might ultimately benefit the airline industry by promoting consolidation and regulatory changes.

The International Air Transport Association (IATA) remains confident that the strong recovery in air travel will continue despite the threat of new US trade tariffs. Willie Walsh, IATA’s chief, stated that while uncertainty is never welcome, the industry has always managed such challenges.

Walsh described Trump’s trade policies as a "net positive" for airlines, arguing that they could drive industry consolidation. He also called on European regulators to reassess their policies, saying Trump’s stance had accelerated this need.

Transatlantic travel saw year-on-year growth in January and February, with overall industry demand rising 9% compared to pre-pandemic levels in 2019. While March and April data are yet to be reviewed, Walsh said there was no clear sign of a slowdown.

However, individual airlines reported mixed trends. Virgin Atlantic and Delta noted a dip in US-UK travel due to economic uncertainty, whereas Lufthansa reported stable transatlantic bookings.

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