IATA 2025 Outlook and Luggage Industry
What IATA’s 2025 Outlook Means for the Luggage Industry
The 81st AGM of the International Air Transport Association (IATA), held in early June, highlighted both the resilience and the challenges facing global aviation. For stakeholders in the luggage industry, the discussions offer critical insights into passenger growth and operational challenges that may impact demand patterns.
Our CFO, Yves Perrenoud, shared some notes:
"IATA forecasts that global air passenger numbers will reach a new record of 5 billion in 2025, 10% higher than the pre-pandemic level. This represents a 5.8% increase (in terms of RPK – Revenue Passenger Kilometres) from 2024, driven by the Asia Pacific and European regions. More airline passengers mean luggage gets used more often, so people want luggage that can withstand the extra wear and tear of increased journey volume.
Despite the optimistic outlook, the air transport industry also faces significant operational challenges. Supply chain disruptions have caused delays in aircraft deliveries. Basically, it takes twice as long for airlines to receive aircraft as it did twenty years ago. This suggests that some future travel demand will remain unmet.
Trade tensions and rising tariffs, particularly in the U.S., are also putting pressure on various industries. These factors affect consumer demand, especially in leisure travel segments, which are key drivers of luggage demand. Indeed, the North American region is only expected to grow by +0.4% in 2025 (in RPKs).
Sustainability remains a focal point, with IATA reaffirming its commitment to achieving net-zero carbon emissions by 2050. While the production of Sustainable Aviation Fuel (SAF) remains limited, accounting for less than 1% of total fuel needs in 2025, IATA emphasizes the necessity for supportive government policies to scale up SAF production and infrastructure.
At Travel Sentry, we are committed to fostering innovation that contributes to the goal of a healthier planet. Operational constraints, coupled with the need to enhance the profitability of a razor-thin margin business, may pressure airlines to enforce stricter baggage policies, potentially influencing consumer luggage preferences. This calls for the luggage industry to remain at the forefront of sustainability and innovation.
For the luggage industry, these developments signal a sustained upward trend in travel demand, presenting growth opportunities. Similarly, operational challenges and sustainability initiatives will shape airline policies on baggage handling, creating numerous opportunities to satisfy consumers' needs with further innovation.
During an uncertain period and a rapidly changing business environment, consumer needs remain our compass. Whether travellers are taking short getaways, exploring local destinations, or combining business with leisure, they still need reliable luggage to carry their belongings. It's up to all of us in the luggage industry and the travel industry, more broadly speaking, to make this experience even better!"