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At the annual summit, global airlines will address net-zero uncertainty and trade war at the annual summit

The annual airline summit in India will feature an unpredictable trade war, and a host of environmental targets. This is due to the concern that geopolitical uncertainties could dampen demand for travel and increase costs.

After a full recovery of the passenger market following the pandemic, more people are now flying. However, airlines are faced with rising costs, prolonged plane delivery delays and lingering bottlenecks in their supply chains.

The evolving trade war of President Donald Trump has also added to the volatility and risk in the aerospace industry.

The U.S. airline industry has recently been affected by a slump in demand. Carriers are struggling to predict passenger behavior and operating costs.

New Delhi will host the annual three-day conference of the influential International Air Transport Association, which represents over 300 airlines and more than 80% global air traffic.

Air travel in Asia will outpace Europe and North America over the next few decades, according to the summit hosted by India's largest airline IndiGo.

India's recent hostilities against Pakistan, which are forcing Indian airlines to make large and expensive detours through Pakistani airspace highlights the increasing burden conflict zones place on airline operations.

IATA stated in February that aviation safety is a major concern due to accidents and incidents involving conflict zones. This requires urgent global coordination.

Aviation safety is also a focus, following a series of accidents that occurred in Kazakhstan, South Korea, and North America in the last six months. There are also growing concerns in the United States about the air traffic control system.

NET-ZERO DOUBTS

IATA is warning more and more that airlines won't meet their sustainability goals and that the transition to sustainable aircraft fuel (SAF), and new technologies, will not be funded in a way that makes sense.

In 2021, airlines agreed to aim for net-zero emission in 2050. This was based on a gradual shift to SAF (which is made from waste oils and biomass) which costs more than conventional jetfuel.

Willie Walsh, Director General of IATA, has said in recent weeks that the industry must reevaluate its commitment.

Walsh said that SAF manufacturers are not providing the necessary support to airlines in order for them to pay the higher cost of fuel. Airbus and Boeing delays in delivering more fuel-efficient planes are also causing airlines headaches.

IATA reported that 1 million metric tonnes of SAF were produced worldwide in 2024. This was below the forecast of 1.5 million tons and production was described as disappointingly slow.

"Demand continues to exceed supply and costs remain prohibitively expensive." Subhas Menon is the director general of Association of Asia Pacific Airlines. He said that regulatory frameworks for encouraging SAF production were still inconsistent or inadequate. Reporting by Lisa Barrington from Seoul and Abhijith Ganapavaram from New Delhi. Editing by Jamie Freed.

(source: Reuters)