Market Intelligence: North America

IATA Forecasts Moderate Strengthening of Airline Profitability in 2025

Global – The International Air Transport Association (IATA) has projected a modest rise in global airline profitability for 2025. The updated outlook, released during the IATA summit in New Delhi, outlines that while net profits are expected to grow compared to 2024, they will fall short of earlier projections due to geopolitical tensions, supply chain constraints, and persistent cost pressures.

IATA estimates net profits will reach $36 billion in 2025 (a 3.7% net margin), slightly below the $36.6 billion forecasted in December 2024. While total revenues are expected to hit a historic $979 billion, airlines continue to operate under tight margins, with an average per-passenger profit of $7.20.

Despite a global GDP slowdown to 2.5% and weakening air cargo performance, falling jet fuel prices and increasing efficiency gains have allowed the industry to maintain a positive trajectory. Fleet modernization and surging passenger demand are also credited for the industry’s resilience, though challenges remain in SAF adoption, aircraft availability, and regional volatility.

  • Profitability: Net profits projected at $36B in 2025, up from $32.4B in 2024.

  • Revenue: Total industry revenues to hit record $979B (+1.3%), driven by strong passenger growth.

  • Passenger Metrics: 4.99B passengers forecasted, 84% average load factor, $374 average airfare.

  • Cargo Decline: Revenues to fall 4.7% due to protectionism, weaker yields, and slower growth.

  • Fuel Impact: Jet fuel at $86/barrel (down from $99), with SAF costs posing pricing pressures.

  • Fleet Challenges: Aircraft delivery shortfalls, engine issues, and a 17,000+ aircraft backlog.

  • Risks: Trade wars, oil volatility, geopolitical tensions, regulatory fragmentation.

  • Regional Outlook:

    • Middle East: Highest profitability margin (8.7%).

    • Africa: Lowest margin (1.3%) due to high costs and infrastructure gaps.

    • North America: Strong absolute profits but hampered by crew and engine shortages.

    • Europe: Buoyed by LCC growth and open skies.

    • Asia-Pacific: Strong demand but slowed by China’s economic uncertainty.

    • Latin America: Only region forecasted to decline in profitability.

Statements:

“The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections. The biggest positive driver is the price of jet fuel which has fallen 13% compared with 2024 and 1% below previous estimates. Moreover, we anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence. The result is an improvement of net margins from 3.4% in 2024 to 3.7% in 2025. That’s still about half the average profitability across all industries. But considering the headwinds, it’s a strong result that demonstrates the resilience that airlines have worked hard to fortify,” said Willie Walsh, IATA’s Director General.

“Perspective is critical to put into context such large industry-wide aggregate figures. Earning a $36 billion profit is significant. But that equates to just $7.20 per passenger per segment. It’s still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry’s resilience to the test. Policymakers who rely on airlines as the core of a value chain that employs 86.5 million people and supports 3.9% of global economic activity, must keep this clearly in focus,” said Walsh.

Source: IATA

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CAE Announces 2025 Appointment of Matthew Bromberg as President and Chief Executive Officer

Global – CAE, on June 2, 2025, announced the appointment of Matthew Bromberg as President and Chief Executive Officer (CEO), effective August 13, 2025. In this role, Mr. Bromberg will lead the company’s strategic growth and drive its continued evolution into the future. Mr. Bromberg will also be a nominee for election to the Board at the upcoming Annual and Special Meeting of Shareholders.

CAE also announced that Calin Rovinescu will become Executive Chairman of the Board and that Sophie Brochu will serve as Lead Independent Director, reflecting CAE’s commitment to strong, best-in-class governance.

The appointment of Mr. Bromberg has been approved by CAE’s Board of Directors and will take effect as part of an orderly transition plan after the 2025 Annual and Special Meeting of Shareholders. This coincides with the previously announced departure of Marc Parent as CAE’s President and CEO. Mr. Bromberg will join CAE effective June 16, 2025, as Incoming President and CEO, working closely with Mr. Parent throughout the transition.

“Matthew Bromberg is a proven leader with deep experience in both aerospace and defence, involving large-scale international operations. His appointment is the result of a rigorous global selection process, and along with the entire Board, I am absolutely confident that CAE’s future will be bright with Mr. Bromberg at the helm, working together with the exceptionally talented leadership team that is in place at CAE. It will be a pleasure to work alongside him as I take on the role of Executive Chairman.” said Mr. Rovinescu.

Said Mr. Bromberg, “These are exciting times for CAE, with strong secular growth tailwinds across all its markets. CAE is already a recognized global leader in training solutions for civil aviation and defence and security. With the support of its dedicated team, I look forward to building on that leadership, advancing innovation, operational excellence, and creating long-term value for its stakeholders in Quebec, Canada and around the world. I am also excited to relocate to CAE’s global headquarters in Montreal in the coming weeks and contribute to its vibrant business community.”

Mr. Rovinescu added: “The Board once again thanks Marc Parent for his 16 years of devoted service as President and CEO, during which time he led the transformation of CAE from primarily an industrial products company to the world leader in aviation training solutions. Marc has left a lasting impact on CAE and global aerospace and has created a solid foundation for us to continue to build on.”

Said Mr. Parent, “I couldn’t be prouder to pass the torch of leadership to Matthew Bromberg. I have no doubt he will take CAE to new heights and inspire our team to extraordinary achievements. CAE is in good hands.”

Mr. Bromberg’s proven track record

Mr. Bromberg, 55, is a seasoned executive with a proven track record of driving operational excellence, transformation and growth in commercial and military aerospace markets for major global publicly traded companies. His strategic vision and deep industry expertise position him to lead CAE into its next phase of growth and innovation.

Since 2022, Mr. Bromberg has headed Global Operations for Northrop Grumman Corporation, located in Falls Church, VA, one of the world’s largest aerospace and defence technology companies. During his tenure, he spearheaded substantial enterprise cost efficiencies by driving program excellence, streamlining operations, and leading a major supply chain transformation. From 2017 to 2022 he was President, Military Engines, for Arlington, VA-based RTX Corp. (formerly Raytheon Technologies Corp.), the world’s largest aerospace and defence company. From 2013 to 2017 he was President, Commercial Aftermarket Operations, for the aircraft engine company Pratt & Whitney, located in East Hartford, CT.

Mr. Bromberg earned a Master of Business Administration and a Master of Mechanical Engineering from the Massachusetts Institute of Technology and a Bachelor of Arts in Physics at the University of California, Berkeley. A complete biography for Mr. Bromberg is available on CAE’s website.

Mr. Rovinescu as Executive Chairman and Ms. Brochu as Lead Independent Director

The appointments of Mr. Rovinescu and Ms. Brochu will also take place after the 2025 Annual and Special Meeting of Shareholders, subject to their election to the Board. Mr. Rovinescu was appointed to the Board on February 14, 2025 as an independent director and Chair. Ms. Brochu has been an independent director since 2023.

Mr. Rovinescu is a highly respected business leader and former President and CEO of Montreal-based Air Canada, the country’s largest air carrier. As Executive Chairman, he will work closely with the President and Chief Executive Officer in the development and execution of the Company’s strategic initiatives while also being responsible for the effective functioning of the Board. Along with Mr. Bromberg, Mr. Rovinescu, who is bilingual in French and English, will have the opportunity and authority to represent CAE to investors, governments, commercial partners and the media. Mr. Rovinescu’s extensive experience in corporate leadership and governance will be instrumental in helping to drive CAE’s long-term vision and to enhance stakeholder value.

Mr. Rovinescu’s biography can be found here.

Ms. Brochu is an accomplished business leader and former President and CEO of Hydro-Québec, the largest producer of hydroelectric power in North America. She brings extensive expertise in strategic leadership and management, government relations, human resources, compensation and sustainability. Her appointment as Lead Independent Director follows best-in-class practices, ensuring CAE retains its strong Board governance. She will also preside over executive sessions of the independent directors, without the presence of management.

Positioning CAE for the future

These appointments reflect CAE’s dedication to strengthening its leadership team to meet the evolving needs of its customers and stakeholders. Together, they will help guide CAE’s strategic priorities, expand its global reach, and drive sustainable growth, while following best governance practices.

About CAE
At CAE, we exist to make the world safer. We deliver cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest. Around the globe, we’re everywhere customers need us to be with approximately 13,000 employees at around 240 sites and training locations in over 40 countries. For nearly 80 years, CAE has been at the forefront of innovation, consistently seeking to set the standard by delivering excellence in high-fidelity flight simulators and training solutions, while embedding sustainability at the heart of everything we do. By harnessing technology and enhancing human performance, we strive to be the trusted partner in advancing safety and mission readiness—today and tomorrow.

Source: CAE
Photo Credit: CAE

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US Flight Training Provider Nationwide Aviation Expands 2025 Fleet with Tecnam P2006T

USA – Nationwide Aviation has officially welcomed a brand-new Tecnam P2006T aircraft to its training fleet, marking a major milestone for the Texas-based academy’s multi-engine instruction program. The transaction was facilitated with strong support from Derek Riddle of Tecnam, and Central Flying Service, LLC.

In April Nationwide Aviation has introduced a new accelerated Multi-Engine Training programme using its recently acquired Tecnam P2006T aircraft. The programme caters to pilots pursuing Commercial Multi-Engine Add-On, Multi-Engine Instructor (MEI), and ATP Multi-Engine ratings, offering a condensed training schedule with daily pilot certification outputs.

  • The 5-day course package includes:

    • 8 hours of aircraft rental with instruction

    • 4 hours of advanced ground instruction

    • 1.5 hours of aircraft rental for the checkride

    • DPE checkride fee

  • Total course cost starts from $5,962.50

  • The programme is structured for rapid progression and pilot certification, with pilots completing ratings daily since the aircraft’s induction

Source: Tecnam
Photo Credit: Central Flying Service

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Highlighting That US Foreign Student Visa Interview Scheduling Pause Will Only Be A Few Days

United States – The U.S. Department of State has issued a temporary pause on scheduling new interviews for foreign student visa applicants, citing upcoming changes related to social media screening procedures. The directive is expected to last only a few days.

  • A cable signed by Secretary of State Marco Rubio instructed U.S. embassies and consulates to halt adding any new appointment slots for F (academic students), M (vocational students), and J (exchange visitors) visa categories.

  • The pause is described as a short-term measure while the administration prepares to implement enhanced social media vetting protocols.

  • The guidance anticipates that further instructions will be issued in the coming days, suggesting that visa interview scheduling will resume shortly.

“Effective immediately, in preparation for an expansion of required social media screening and vetting, consular sections should not add any additional student or exchange visitor (F, M, and J) visa appointment capacity until further guidance is issued septel, which we anticipate in the coming days,” reads the cable. (“Septel” is short for “separate telegram.”)

As an example, the US Embassy spokesperson in India shared with media that “Visa Applicants May Continue to Submit Applications“.

Source: US Department of State

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