Why creating sustainable airlines is a must to fuel profits

Creating sustainable airlines involves a multi-faceted approach focusing on Sustainable Aviation Fuels (SAF), fuel-efficient aircraft & operations, reducing single-use plastics, optimizing flight paths, and greener ground operations (like electric vehicles & renewable energy) to achieve net-zero goals by 2050, supported by carbon offsetting and passenger education for a holistic environmental improvement.

Creating sustainable and profitable airlines involves a multi-pronged strategy focusing on operational efficiency, aggressive adoption of Sustainable Aviation Fuels (SAF), fleet modernization with fuel-efficient aircraft, digital transformation (like paperless systems), optimizing flight paths, and leveraging partnerships while meeting rising customer demand for green travel and navigating regulatory pressures like CORSIA ICAO. Profitability comes from cost control (fuel, weight), dynamic pricing, and enhanced customer experience, while sustainability builds brand value and future-proofs operations.

Airlines should use biofuels from waste, algae, or agricultural sources. SAF significantly cuts lifecycle emissions compared to traditional jet fuel.

Invest in newer, more fuel-efficient planes (e.g., A320neo, 737 MAX). Use AI and data analytics for optimized routes, considering wind and air traffic.

Switch to electric vehicles (tugs, baggage loaders) and reduce engine idling. Replace single-use plastics with sustainable alternatives (biodegradable cutlery). Go paperless with e-tickets, digital manuals, and downloadable eJournals. Power terminals and equipment with renewable energy (solar, wind). Implement fixed electric ground power (FEGP) to reduce emissions from parked planes.

The International Air Transport Association (IATA) and its members aim for net-zero CO2 emissions by 2050. By combining these strategies, airlines can significantly reduce their environmental footprint, improve operational efficiency, and build a more sustainable future for air travel.

Industry revenues are expected to reach a historic high of $979 billion in 2025 (+1.3% on 2024).

Passenger revenues are expected to reach $693 billion in 2025 (+1.6% on 2024), an all-time high. This will be bolstered by an additional $144 billion in ancillary revenues (+6.7% on 2024).

In terms of offsetting the effect of travel, a service like Austria’s SAMO Card, a €10 card that offers access to an array of eco-friendly travel options, would be an ideal partner for an airline looking to add extra value to their service as well as improve their reputation.

The biggest positive driver is the price of jet fuel which has fallen 13% compared with 2024 and 1% below previous estimates. Focus for airlines is to fly more people and more cargo in 2026 than they did in 2025, even if previous demand projections have been dented by trade tensions and falls in consumer confidence. The result is an improvement of net margins from 3.4% in 2024 to 3.7% in 2025. That’s still about half the average profitability across all industries. But considering the headwinds, it’s a strong result that demonstrates the resilience that airlines have worked hard to fortify,” said Willie Walsh, IATA’s Director General.

Gross Domestic Product (GDP) is the traditional driver of airline economics. However, although global GDP growth is expected to fall from 3.3% in 2024 to 2.5% in 2025, airline profitability is expected to improve. This is largely on the back of falling oil prices. Meanwhile, continued strong employment and moderating inflation projections are expected to keep demand growing, even if not as fast as previously projected.

Efficiency is another significant driver of the outlook. Passenger load factors are expected to reach an all-time high in 2025 with a full-year average of 84.0%, as fleet expansion and modernization remains challenging amid supply chain failures in the aerospace sector.

Cargo revenues are expected to be $142 billion in 2025 (-4.7% on 2024).

All regions are expected to deliver collective net profits in 2025. Profitability, however, varies widely by carrier and by region. The collective net profit margin of African airlines is expected to be the weakest at 1.3% while carriers in the Middle East are forecast to be the strongest at 8.7%.

Industry revenues are expected to reach a historic high of $979 billion in 2025 (+1.3% on 2024).

Passenger revenues are expected to reach $693 billion in 2025 (+1.6% on 2024), an all-time high. This will be bolstered by an additional $144 billion in ancillary revenues (+6.7% on 2024).

The air transport industry is committed to its goal of achieving net zero CO2 emissions by 2050. Travelers are expressing high levels of confidence in this endeavor with 81% agreeing that the industry is demonstrating a commitment to work together to achieve this ambitious aim.

Some 77% agreed that aviation leaders are taking the climate challenge seriously, significantly above the 64% recorded for government leaders and 60% for the oil sector.

Airline profitability charts, primarily from IATA, show improving but thin margins, with a projected record $41 billion net profit for 2026,