The International Air Transport Association (IATA), an organization representing more than 300 global airlines and accounting for more than 80% of total air traffic, will host its annual conference from June 2 to 4 in Dubai, the world's busiest international aviation hub. Geopolitical tensions, a shortage of aircraft, and ambitious environmental goals will present a range of challenges for global airline owners at next week's annual summit. At the same time, weakening ticket prices are also complicating the outlook for airlines.

According to information, aviation industry leaders said that the impact of the COVID-19 pandemic on the global aviation industry is a thing of the past. According to IATA, the aviation industry achieved profits in 2023, and air passenger traffic at the beginning of this year hit a new high since 2019. According to aviation data provider OAG, global airline capacity in the second quarter of 2024 was 4% higher than in 2019.

Despite this, the airline warns that as the airline network reopens or expands, the rate of return (that is, the average price passengers pay per mile flown) will face the dual challenge of rising costs and competitive pressure.

Geopolitical tensions have led to lengthening routes, and the aviation industry is facing increasing questions: whether it can meet the IATA goal set in 2021 to achieve net zero carbon emissions by 2050. In response, Airbus CEO Guillaume Faury said at the VivaTech conference that there is still no conclusion, and there is still much work to be done.

Meanwhile, ticket prices in Europe and Asia have begun to stabilize or fall, indicating that the trend of “travel at any cost” is weakening after the pandemic. British Airways parent company IAG indicated in its annual report that the year ahead could be challenging for the aviation industry.

After recording record profits for the second year in a row, Singapore Airlines' passenger yield is slowing this month. Talking about the global industry, OAG analyst John Grant said that the results in 2023 and 2024 were excellent, but there are now signs of weakness.

According to reports, IATA was founded in 1945 and was one of a series of organizations that formulated the Peace Aviation Framework after World War II. Once a pricing organization, the organization is known for actively defending the role of aviation in the connected economy.

Environmental critics point out that the growth of the aviation industry is at odds with efforts to control emissions, and believe that the aviation industry's goals (mainly based on sustainable aviation fuel) are far from sufficient. This month, Singapore Airlines and Qatar Airways planes experienced turbulence, causing injuries to dozens of passengers and crew members, making cabin safety and the link between climate change and turbulence a focus of attention.

The IATA meeting could also re-ignite the debate over passengers' rights as some countries seek to emulate the EU's compensation plan. The airline said the regulations may affect safety, while passenger groups said that some airlines failed to pay on time.

It's worth mentioning that the conference comes as the Gulf region enters a new phase of competition and expansion, which is home to Emirates and its smaller competitor Qatar Airways. Saudi and Indian airlines are adding new capacity, and Saudi Arabia and the UAE have also announced new major airport projects.

Furthermore, the IATA conference was hosted by Emirates, the world's largest long-haul aircraft operator, and$Boeing (BA.US)$The first major airline gathering since falling into a quality and corporate crisis. Boeing is facing investigation by US regulators and may be prosecuted for past actions, and production of its best-selling aircraft, the 737 MAX, has also declined.

Airbus is also working to meet delivery targets, and many of its existing narrow-body aircraft are facing delays in Pratt & Whitney engine maintenance. Qatar Airways CEO Badr Mohammed Almir said this month that Airbus and Boeing need to put more pressure on suppliers to reduce delays in production or delivery.