Willie Walsh, the Director General of the International Air Transport Association (IATA), indicated that the U.S. may not be able to catch up to the global travel level anytime soon.
In an interview with Bloomberg TV on the sidelines of the Singapore Airshow on Tuesday, Walsh stated that the expected growth in the U.S. is likely to be “broadly flat,” whereas the global demand is likely to grow at 4.9%.
According to Walsh, a shortage of aircraft, tariffs, tighter immigration, and supply chain issues impacting the major U.S. airlines have led to the stagnation of the American aviation market.
When asked about President Donald Trump‘s threat to decertify Canadian aircrafts including Bombardier, Walsh stated that he had “full confidence” in the Federal Aviation Authority (FAA) that they wouldn’t allow politics to interfere in regulatory matters.
However, FAA Administrator Bryan Bedford told Bloomberg on Monday that they support Trump’s demand for certification for the U.S. Gulfstream jets. Bedford stated that they wanted to ensure that the same amount of resources is being spent to certify U.S. aircraft as the U.S. is spending on certifying foreign-owned aircraft. The FAA administrator called for a “level playing field.”
A severe winter storm in January caused several flight cancellations comparable to the COVID-19 Pandemic, as per Transport Secretary Sean Duffy. Several airlines, such as Delta Air Lines (NYSE:DAL), JetBlue Airways Corp. (NASDAQ:JBLU), United Airlines (NASDAQ:UAL), and American Airlines Group Inc. (NASDAQ:AAL) were impacted amid the cancellations and delays.
Previously, the 43-day government shutdown also resulted in major staffing shortages, leading to flight cancellations and delays.
US Tourism Woes Continue
According to the World Travel and Tourism Council (WTTC) report in January, the U.S. 6% drop in foreign visitors in 2025, even as global tourism witnessed a rise, reported Reuters.
Another report by the WTTC, released last week, stated that the U.S. Electronic System for Travel Authorization (ESTA) requiring social media disclosure could slash visitor spend by $15.7 billion and impact 157,000 American Jobs.
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