Airlines warn over weakening of global trade rules

At the International Air Transport Association’s (IATA) annual general meeting held in New Delhi, Director General Willie Walsh cautioned that increasing protectionism and trade restrictions are threatening the global economy and the aviation industry. He emphasized the critical link between international trade and supply chain management and the prosperity generated by global connectivity through air travel.

"Flying, like all forms of connectivity, enhances global prosperity," Walsh stated. "However, the rise of isolationism, trade barriers, and the weakening of the multilateral rules-based system is undermining international trade supply chain efficiency. These trends destroy wealth and reduce living standards."

In a key update, IATA revised its 2025 profit forecast downward for the global airline industry, citing geopolitical tensions, weakened consumer confidence, and continued disruptions in aircraft supply. Walsh criticized the "unacceptable" delays in jetliner deliveries, which are disrupting airlines' growth strategies and compounding issues in global trade and supply chain management.

The aviation sector plays a crucial role in facilitating international trade and supply chain logistics, including Exim in supply chain operations (export-import). IATA’s warning signals broader economic implications, as air cargo and passenger travel form the backbone of many international trade supply chain networks.