Airline leaders from around the world will gather in India’s capital this weekend as the International Air Transport Association (IATA) convenes its annual general meeting, with trade war tensions, soaring costs, and climate targets high on the agenda.
The summit, which runs Sunday through Tuesday, comes at a time of record passenger traffic globally following the post-pandemic recovery, yet the industry faces multiple headwinds — including geopolitical instability, supply chain challenges, and increasing doubts over the feasibility of reaching net-zero emissions by 2050.
Among the sharpest concerns is U.S. President Donald Trump’s revived trade war, which has disrupted the aerospace industry’s long-standing tariff-free environment, creating uncertainty for carriers and aircraft manufacturers alike.
“You can't say that a fall-off in consumer confidence and higher inflation are not going to mean less money in the wallet for people to spend,” said Aengus Kelly, CEO of AerCap, the world’s largest aircraft leasing company, in remarks to Reuters. While airlines are still managing to fill planes, Kelly noted that yield pressures — the average fare per seat sold — remain a concern.
The U.S. market, in particular, is experiencing softening travel demand, while European and Asian carriers continue to benefit from strong bookings. Airlines globally are also grappling with delivery delays of newer, fuel-efficient jets, rising operational costs, and logistical bottlenecks.
Asia’s Aviation Boom and Regional Challenges
The gathering in New Delhi, hosted by India’s largest airline IndiGo, underscores India’s growing importance in global aviation. Now the world’s third-largest air travel market, India is poised for sustained growth, even as regional tensions — such as recent hostilities with Pakistan — force airlines to make expensive detours around restricted airspace.
Conflict-related flight disruptions and growing concerns over aviation safety will be another focal point, especially following a string of accidents in Kazakhstan, South Korea, and North America. IATA has stressed the urgent need for global coordination to ensure airline safety in or near active conflict zones.
Sustainability Targets Under Strain
IATA’s 2021 net-zero pledge by 2050 remains a foundational industry goal, but doubts are mounting about its viability. The plan hinges heavily on scaling Sustainable Aviation Fuel (SAF) — a bio-based alternative to traditional jet fuel that remains costly and limited in supply.
“Demand for SAF continues to outstrip supply and costs remain prohibitively high,” said Subhas Menon, director general of the Association of Asia Pacific Airlines. He criticized the lack of cohesive global policies, calling existing regulatory support “underdeveloped, inconsistent, or insufficient.”
Energy producers and aircraft manufacturers Airbus and Boeing are also under pressure, accused by airlines of delayed deliveries and lagging technological innovation.
IATA Director General Willie Walsh is expected to deliver a sharply worded address Monday, likely targeting governments for inadequate regulatory support and energy firms for failing to scale SAF production.
While a formal revision of the industry’s net-zero commitment is not expected during the New Delhi summit, insiders say private discussions are growing more frank about the financial and logistical challenges involved.
What’s at Stake
As global aviation rebounds, the industry stands at a crossroads — balancing economic pressures, environmental responsibilities, and geopolitical realities. The New Delhi summit offers a key platform to address these tensions and shape the trajectory of global air travel for the coming decades.
China has strongly criticised French President Emmanuel Macron's remarks linking Ukraine and Taiwan, calling them a “double standard” and insisting the two issues are not comparable.
Magnus Carlsen suffered a shock defeat to China’s Wei Yi at Norway Chess 2025, just two days after beating world champion D Gukesh.
The European Commission voiced strong regret over the United States’ decision to raise tariffs on imported steel to 50%, warning the move adds uncertainty to the global economy.
Panic erupted on a Seoul subway train after a man allegedly set a fire onboard, prompting the evacuation of over 400 passengers through a tunnel and sending 21 people to hospital with minor injuries.
As global tensions rise, Kazakhstan's leadership navigates a delicate geopolitical balance between Russia, China, and the West, aiming to turn its strategic location into a platform for cooperation, reform, and innovation.
China has strongly criticised French President Emmanuel Macron's remarks linking Ukraine and Taiwan, calling them a “double standard” and insisting the two issues are not comparable.
Magnus Carlsen suffered a shock defeat to China’s Wei Yi at Norway Chess 2025, just two days after beating world champion D Gukesh.
The European Commission voiced strong regret over the United States’ decision to raise tariffs on imported steel to 50%, warning the move adds uncertainty to the global economy.
Panic erupted on a Seoul subway train after a man allegedly set a fire onboard, prompting the evacuation of over 400 passengers through a tunnel and sending 21 people to hospital with minor injuries.
As global tensions rise, Kazakhstan's leadership navigates a delicate geopolitical balance between Russia, China, and the West, aiming to turn its strategic location into a platform for cooperation, reform, and innovation.
AnewZ takes to the streets of Yerevan and Baku to ask a simple yet deeply complex question: How do you see peace between Armenia and Azerbaijan? In the first part of our special report, we hear the hopes, doubts, and scars still shaping people’s perspectives on both sides.
On May 28, the inauguration ceremony of Lachin International Airport was held.
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
EU ministers have greenlit a massive €150 billion defense investment fund—dubbed the Security Action for Europe (SAFE)—as the bloc ramps up its military readiness in response to Russia’s aggression and growing uncertainty over U.S. security guarantees.
Brazil’s economy is expected to have regained momentum in the first quarter of 2025, driven by a surge in household spending and private investment, according to a Reuters poll of economists conducted from May 21–26.
China has strongly criticised French President Emmanuel Macron's remarks linking Ukraine and Taiwan, calling them a “double standard” and insisting the two issues are not comparable.
Magnus Carlsen suffered a shock defeat to China’s Wei Yi at Norway Chess 2025, just two days after beating world champion D Gukesh.
The European Commission voiced strong regret over the United States’ decision to raise tariffs on imported steel to 50%, warning the move adds uncertainty to the global economy.
Panic erupted on a Seoul subway train after a man allegedly set a fire onboard, prompting the evacuation of over 400 passengers through a tunnel and sending 21 people to hospital with minor injuries.
Australian Defence Minister Richard Marles has urged China to be more transparent about its military build-up and operations, calling for better communication amid rising concerns over Beijing’s presence in the Pacific.
China has strongly criticised French President Emmanuel Macron's remarks linking Ukraine and Taiwan, calling them a “double standard” and insisting the two issues are not comparable.
Magnus Carlsen suffered a shock defeat to China’s Wei Yi at Norway Chess 2025, just two days after beating world champion D Gukesh.
The European Commission voiced strong regret over the United States’ decision to raise tariffs on imported steel to 50%, warning the move adds uncertainty to the global economy.
Panic erupted on a Seoul subway train after a man allegedly set a fire onboard, prompting the evacuation of over 400 passengers through a tunnel and sending 21 people to hospital with minor injuries.
As global tensions rise, Kazakhstan's leadership navigates a delicate geopolitical balance between Russia, China, and the West, aiming to turn its strategic location into a platform for cooperation, reform, and innovation.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment