The global economy may be facing an uncertain 2025 in light of trade tensions and geopolitical conflicts, but there's a bright spot that investors can take solace in: aviation. The profitability of the aviation industry is expected to improve in 2025, despite global gross domestic product growth being forecast to drop to 2.5% in 2025 from 3.3% in 2024, according to the International Air Transport Association. In a report released on Monday, the IATA said revenue, operating profits and net profits of the industry are expected to increase from 2024, although some of those were lower than projections made in December. For example, net profits for the industry are projected at $36 billion for 2025, up from the $32.4 billion earned in 2024, but slightly lower than the December projection of $36.6 billion. The aviation industry's net profit margin is also forecast to rise to 3.7% in 2025, from 3.4% the previous year. Total revenues are projected to hit a record high of $979 billion, 1.3% higher than the previous year, but down from the $1 trillion in its last forecast. The IATA attributed the better results mainly to two factors: lower jet fuel costs and greater efficiency. It expects passenger load factors will reach an all-time high in 2025 with a full-year average of 84%, "as fleet expansion and modernization remains challenging amid supply chain failures in the aerospace sector." PLF shows how efficiently an airline is filling its seats. Jet fuel costs are expected to average $86 per barrel in 2025, down from $99 in 2024, the IATA noted, saying it will translate into a total fuel bill of $236 billion, $25 billion lower than the $261 billion incurred in 2024. "Recent financial data show minimal fuel hedging activity over the past year, indicating that airlines will generally benefit from the reduced fuel cost. It is not expected that fuel will be impacted by trade tensions," IATA said.