The 81st IATA AGM 2025 and World Air Transport Summit (WATS) held from June 1 to 3 in New Delhi marked a defining moment for India’s ascent in global aviation. This was the first time in 42 years that India hosted the prestigious global aviation gathering. Organised under the aegis of IATA and hosted by IndiGo, the event brought together around 1,700 senior representatives from airlines, governments, international organisations, and the media from around the world.
The high-level IATA gathering in New Delhi made it unmistakably clear: India is no longer on the sidelines of the global aviation industry. It is actively shaping its future.
PM Modi Affirms India’s Aviation Ambitions
During the plenary session, Prime Minister Narendra Modi and Kinjarapu Rammohan Naidu, Minister of Civil Aviation, signalled India’s clear intent to position itself as a major aviation hub, driven by strong domestic demand, robust infrastructure development, and a focus on sustainability and innovation.
With India now ranking as the world’s third-largest domestic aviation market, the country aims to double its annual air traffic to 500 million passengers by 2030. A key highlight was the emphasis on India’s Maintenance, Repair, and Overhaul (MRO) ambitions, alongside the growing investment opportunities in the Indian civil aviation value chain.
IATA’s Strong Financial Outlook Amid Global Challenges
IATA released its updated 2025 global airline industry outlook during the event, projecting a net profit of $36.0 billion for the year, an increase from $32.4 billion in 2024. Despite being slightly below previous projections, the industry is on a path of gradual recovery, with the net profit margin anticipated to rise to 3.7 per cent.
The financial optimism, however, came with caution from the IATA Director General, Willie Walsh. He stated that the industry continues to operate on tight margins, with profitability susceptible to market shocks, regulatory changes, and cost pressures, especially from rising fuel prices and geopolitical uncertainties.
The CEO Panel at WATS
At the WATS Summit, a CEO panel featured dynamic discussions around operational challenges, notably the delays in aircraft deliveries and the impact of grounded fleets. Global airline leaders applauded India’s consistent progress in infrastructure, particularly its aggressive pace in airport construction, adding nearly nine airports annually and upgrading several others. In contrast, airport development remains sluggish in many parts of the world.
Revenue Repatriation and SAF Adoption
Another major point of discussion was the issue of blocked airline funds globally. As of April 2025, approximately $1.3 billion in airline revenues remain blocked by various governments. While this represents a 25 per cent improvement from October 2024 levels, IATA continues to advocate for unrestricted repatriation and adherence to international agreements.
On the sustainability front, Sustainable Aviation Fuel (SAF) took centre stage. SAF production is expected to double to 2 million tonnes (2.5 billion litres) in 2025, accounting for just 0.7 per cent of total fuel demand. Despite the increase, SAF remains a costly alternative, adding approximately $4.4 billion to the industry’s fuel expenses globally. While Europe currently leads in SAF deployment due to regulatory mandates, India is poised to become a future frontrunner in biofuels.
Strategic Alliances and Global Expansion
On the sidelines of the AGM, Air India expanded its global footprint through new interline and codeshare agreements with Air Mauritius, Icelandair, airBaltic, Bulgaria Air, Cyprus Airways, and Uzbekistan Airways, enhancing its global connectivity. IndiGo also signed an MoU with Delta Airlines while expanding its partnership with Air France-KLM and Virgin Atlantic. Additionally, IndiGo has entered into a new codeshare agreement with Garuda Indonesia.
New Leadership and Recognition
The AGM also witnessed a leadership transition at IATA. Luis Gallego, CEO, International Airlines Group (IAG), has assumed the role of Chair of the IATA Board, succeeding Pieter Elbers, CEO, IndiGo, who will continue to serve as a board member. The IATA Diversity & Inclusion Awards were presented during the WATS summit, celebrating the industry’s efforts to foster a more inclusive and equitable workplace.
The momentum now shifts to South America, as the 82nd IATA AGM will be hosted by LATAM Airlines Group in Rio de Janeiro, Brazil, in 2026.
 held from June 1 to 3 in New Delhi marked a defining moment for India’s ascent in global aviation. This was the first time in 42 years that India hosted the prestigious global aviation gathering. Organised under the aegis of IATA and hosted by IndiGo, the event brought together around 1,700 senior representatives from airlines, governments, international organisations, and the media from around the world.){kind=link}