Willie Walsh, Director General of the International Air Transport Association (IATA), addressed the 58th Annual General Meeting of the Arab Air Carriers’ Organization (AACO) on November 4, 2025. He expressed gratitude to Secretary General Abdul Wahab Teffaha and the Executive Committee for their invitation, as well as Abdelhamid Addou, Chairman and CEO of Royal Air Maroc, who hosted the event.
Walsh noted that both IATA and AACO are committed to serving their members’ needs. He highlighted the role of Kamil Alawadhi, IATA’s Regional Vice President, in leading collaboration with AACO.
In his remarks on industry performance in 2025, Walsh said: “Globally, 2025 is shaping up well despite political and economic uncertainty, armed conflict, and trade friction. Looking over the first nine months of the year, passenger demand is up 4.8% and cargo demand by 3.2%. Considering the circumstances, these are strong numbers, particularly so for cargo.”
He emphasized that while demand has increased, profitability remains a challenge. “I am optimistic about our estimate of a collective industry net profit of $36 billion in 2025. But that is just a 3.7% margin on almost $1 trillion of revenues. We are in a tough, low margin, highly regulated business where it is hard to make ends meet,” Walsh stated.
Walsh reported on several key topics:
**42nd ICAO Assembly Outcomes**
He described three important results from the recent ICAO Assembly: support for existing slot allocation regimes; backing ICAO principles for setting airport charges; and reinforcing global standards for passenger rights regulations.
“The Assembly was also very helpful in supporting our calls for governments to abide by the agreements they make at ICAO,” Walsh said. He cited specific issues such as accident reporting under Annex 13 requirements—“Given that only about half of accident investigations produce a final report in line with Annex 13 requirements”—and efforts to prevent GNSS interference.
Walsh raised concerns about radio frequency spectrum allocation affecting aviation safety: “We must maintain guard bands around critical frequencies such as those used for radio altimeters.” He referred to past costs incurred during rollouts of new telecommunications technologies like 5G.
On taxation developments related to airlines, he noted: “The current treatment of airline corporate tax has no leakage, is fair, and efficient—well worth defending!”
He also mentioned progress toward net zero carbon emissions by 2050 and described initiatives such as establishing a Finvest Hub for decarbonization funding and supporting a global SAF accounting framework.
Highlighting CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), Walsh said more governments need to provide Eligible Emissions Units (EEUs): “If you are looking to buy credits, IATA hosts regular auctions for the current supply.” He warned against fragmented taxes or charges that could hinder funding efforts for decarbonization.
**Supply Chain Challenges**
Walsh referenced an IATA study quantifying over $11 billion in extra costs facing airlines due to supply chain disruptions in 2025:
– Up to $4.2 billion spent on excess fuel from operating older aircraft
– $3.1 billion from increased maintenance costs
– $2.6 billion due to higher engine lease rates since 2019
– $1.4 billion tied up in surplus inventory
To address these challenges he pointed out participation in MRO SmartHub for better spare parts visibility and examining legal options regarding aftermarket conditions.
**Campaigns and Programs**
IATA launched a campaign last month focused on lithium battery safety following survey findings about common traveler misconceptions regarding battery transport rules. The campaign includes multilingual video materials already adopted by several airlines as well as airports like Dubai Airports and Matarat Airports in Saudi Arabia.
Addressing blocked funds—a recurring issue—Walsh noted that $1.3 billion remained inaccessible as of September; most were concentrated in Africa and Middle East countries including Algeria ($245 million), Lebanon ($139 million), Libya ($29 million), Yemen ($17.5 million), and Sudan ($10 million).
He stressed ongoing efforts with ICAO regional teams following disruptions caused by missile attacks earlier this year: “While everybody hopes that the situation will not repeat, we must do better if it does.”
Additionally, Walsh underscored investments into training programs aimed at supporting regional growth plans through expanded classroom offerings.
Finally he thanked airlines contributing operational data vital to informed decision-making across safety and sustainability areas: “For those who are not yet contributing,” he encouraged them “to discuss with our regional team the benefits of participating.”
In closing his speech Walsh recognized achievements across North Africa—including Morocco’s Airports 2030 Strategy—and called attention to opportunities arising from harmonizing standards regionally as well as adopting next-generation efficiency programs.
