Away From Geo-Political Tensions, Policy-Making and Business Activity Keep Aviation Globally Abuzz
Despite geopolitical turbulence and high-stakes setbacks, global aviation is holding course with renewed deals, cautious optimism, and a push for resilience.
(Photo: SBR)
NEW JERSEY, June 24, 2025 — Almost six months into year 2025, aviation is globally one of the most eventful sectors to watch out. Even as geo-political tensions, prevailing in the backdrop of the recent Iran-Israel conflict, led to closure of several airspaces in the UAE, stakeholders in aviation industry sealed many coveted deals at the Paris Air Show last week.
Forced by the ‘no-fly zone’ policy of different countries in the UAE, schedules of airline companies went haywire. Interestingly, on the policy-making side and in terms of the business activity concerning aviation sector, both remain undeterred at a time when airline companies announced mass flight cancellations.
On the business side, for Boeing, it has been a double whammy. Withdrawal of an order placed by Qatar Airways for 25 MAX aircraft, which the airline confirmed in May was a body blow to the aircraft maker.
The worst was yet to come. Earlier this month, airliner Air India’s Boeing 787-8 Dreamliner, with 242 people on board crashed in western India. Boeing shares tumbled 5 percent soon after the India mishap.
Boeing Chief Kelly Ortberg not just cancelled his trip to the Paris Air Show but is also said to have ensured that his top brass in India remains in-sync with the aftermath of the crash. Aviation experts suggest that the fatal Air India crash, which claimed over 240 lives, is set to drive a 10–30 percent spike in insurance premiums for airlines globally.
Reuters reported that at the low-key Paris Air Show, Airbus secured more aircraft orders last week, raising its total to $21 billion, while rival Boeing, preferred not to announce new sales following Air India 787 crash.
Airbus secured an order for 10 long-haul jets from Taiwan's Starlux Airlines in a boost for the European planemaker after one of its biggest customers, AirAsia, dashed expectations of another grand finale matching its earlier expansion.
Notably, Aerospace and defense giant The Boeing Company (BA) demonstrated significant positive momentum on the New York Stock Exchange on Monday, with its stock soaring to 201.41 USD for a strong daily gain of +1.34 percent. This growth momentum is the latest sign of a powerful and sustained upward trend for the company over the past year.
As global equity markets reacted to the Israel-Iran conflict, shares of airline companies in the U.S., Australia, Europe and the Middle East fell by as much as 2 percent to 5 percent.
Tumultuous world politics aside, airliners are maintaining a sharp focus on growth objectives of the sector.
On June 23, media reports said that Air France Industries KLM Engineering & Maintenance has committed to use sustainable aviation fuel (SAF) for 10 percent of its engine testing, equivalent to about 30 test runs each year at the MRO provider’s Paris and Amsterdam facilities. Simultaneous, its parent airline and other major stakeholders in European aviation want more steps to be taken to encourage SAF production in Europe.
Away from the gloom and doom of the Israel-Iran stand-off, policy makers and business executives of airline companies in the UAE held deliberations to boost aviation sector’s safety.
ACI Asia-Pacific & Middle East participated in the Regional Awareness Seminar on the Global Aviation Security Plan (GASeP), held from June 15-16 in Cairo, Egypt, hosted by the ICAO MID Office. The seminar was attended by over 30 representatives from state regulators across the Middle East.
Business activity and think-tank measures with regard to aviation come at a time when the International Air Transport Association (IATA) recently announced updates to its 2025 airline industry financial outlook, showing improved profitability over 2024 and resilience in the face of global economic and political shifts.
Besides, Q1 2025 performance report for benchmark global airlines released on Tuesday (June 24) has brought to fore that the 38 benchmark airlines increased their aggregate operating profit by more than $500 million for the January-March period to $761 million. A robust growth of top airline companies along with the ceasefire between Iran and Israel are strong indicators for a renewed growth of the aviation sector in months to come.
Business hasn’t stalled, even as airspace closes and risk climbs. The sector is recalibrating, not retreating.
Inputs from Saqib Malik
Editing by David Ryder
