Walsh reaffirms industry’s resilience as IATA targets supply chain, sustainability and blocked funds in North Africa

November 4, 2025 in Companies, Travel & Tourism by Editor

IATA Director-General Willie Walsh has lauded the resilience of the global airline industry even as it continues to grapple with low margins, supply chain disruptions, and regulatory uncertainty. Speaking today at the 58th Annual General Meeting of the Arab Air Carriers Organisation (AACO) in Rabat, Morocco, Walsh said 2025 was shaping up “strongly” for air travel despite geopolitical and economic headwinds.

“Passenger demand is up 4.8pc and cargo by 3.2pc. These are strong numbers given the circumstances,” he said. “But profitability remains tight—our estimated USD36 billion in collective net profit represents just a 3.7pc margin on nearly a trillion dollars in revenue.”

Walsh said IATA’s priority was to “make airlines’ work easier, operations more efficient, and costs more manageable,” outlining the association’s recent engagements with ICAO, its push for global sustainability alignment, and efforts to resolve persistent regional challenges, especially in North Africa.

North Africa’s blocked funds still a major concern

Walsh flagged the continued problem of blocked airline revenues in parts of the Africa–Middle East region, where an estimated USD1.3 billion remains unrepatriated.
“Over 93pc of the blocked funds globally are in Africa and the Middle East,” he said, listing Algeria (USD245 million), Lebanon (USD139 million), Libya (USD29 million), Yemen (USD17.5 million) and Sudan (USD10 million) among the affected markets.

He warned that unresolved repatriation issues threaten aviation’s ability to sustain vital connectivity across the region: “Airlines cannot provide economically vital connectivity if they are unable to repatriate the revenues needed to pay the bills.”

Supply chain challenges costing industry USD11 Billion

A new IATA study estimates that global supply chain constraints will cost airlines over USD11 billion in 2025, due to scarcity of aircraft parts, maintenance backlogs, and limited engine supply.
“These disruptions are forcing airlines to operate older, less efficient aircraft and maintain larger spare parts inventories,” Walsh noted. “We are redoubling efforts to find remedies, including legal avenues and better transparency through the MRO SmartHub.”

Walsh reaffirmed IATA’s defence of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) as the sole global framework for managing emissions, cautioning against regional taxes and “solidarity levies” that risk fragmenting climate action.
“If governments wish to raise climate finance, they should make CORSIA’s Eligible Emission Units available. This will generate finance and move us closer to net zero,” he said, urging governments to honour ICAO commitments and resist unilateral taxation.

He welcomed the ICAO Assembly’s backing for key aviation principles — including slot allocation, fair airport charges, GNSS safety, and the protection of radio frequency spectrum critical to navigation systems.

Walsh praised Morocco’s Airports 2030 Strategy and the country’s broader aviation expansion as a model for how infrastructure investment drives national growth.
“Across North Africa, aviation’s success is generating prosperity,” he said. “Morocco’s ongoing airport expansion and preparations for co-hosting the World Cup are strong examples of how aviation supports economic ambition.”

He concluded by reaffirming IATA’s partnership with AACO and its commitment to supporting Middle East and North African carriers through harmonised standards, digital innovation, and stronger regional cooperation.

“Opportunity is the hallmark of our great industry,” Walsh said. “IATA will be at your side as your global association and partner as we build an even more prosperous future for aviation across this region.”