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From New Routes To Better Travel, Here Are IATA’s Key Updates On Expanding Air Networks

The International Air Transport Association (IATA) has announced major developments in global air travel at its recent AGM. Highlights include Air India’s new codeshare with Icelandair, challenges in Sustainable Aviation Fuel production, and over $2 billion in blocked airline funds. These updates mark significant steps towards better connectivity and more sustainable aviation worldwide.

by Siddhi Tendulkar
From New Routes To Better Travel, Here Are IATA’s Key Updates On Expanding Air Networks

In a promising update for global travellers, IATA shared key announcements at its 81st Annual General Meeting in Dubai. The global aviation body highlighted stronger airline partnerships, greener operations, and improved travel efficiency. These updates aim to enhance connectivity and deliver a smoother, more seamless air travel experience across international routes.

Air India & Icelandair Strengthen Ties Through Codeshare Agreement: IATA Update

A standout announcement from the IATA updates on air travel is the codeshare agreement between Air India and Icelandair. This collaboration will allow passengers to enjoy seamless travel between India and Iceland, with Reykjavik as the gateway.

Travellers from Indian cities such as Delhi and Mumbai will now be able to connect effortlessly to Iceland via European hubs. The move marks Air India’s continued expansion under the Tata Group, aligning with its broader vision of becoming a global aviation leader.

Also Read: India Hosts IATA’s 81st AGM And World Air Transport Summit After 42 Years; Here Are Some Key Highlights

This agreement is expected to boost tourism and trade between India and the Nordic countries. It also opens the door to increased two-way travel for adventure seekers and business flyers alike.

Sustainable Aviation Fuel (SAF) Supply Faces Major Roadblock

While demand for air travel soars, one pressing concern in the IATA updates on air travel is the slow progress in Sustainable Aviation Fuel production. Despite industry efforts, only 0.53% of aviation fuel used globally in 2024 came from sustainable sources.

Willie Walsh, IATA’s Director General, stressed the urgent need for government support in scaling SAF production. He called for effective policies that offer commercial incentives and reduce reliance on traditional fuels.

Also Read: Mumbai: Airlines Shouldn’t Be Forced To Move Terminals. IATA Raises Concerns

With aviation aiming to hit net-zero emissions by 2050, the current gap in SAF availability could derail sustainability goals unless swift action is taken.

Airlines Struggle With Over $2 Billion In Blocked Funds

The IATA updates on air travel also highlighted financial challenges faced by global airlines, particularly the issue of blocked funds. In some countries, airlines are unable to repatriate over $2 billion in revenue due to strict foreign exchange controls.

This has disrupted operations and affected future route planning. IATA has urged governments to resolve the issue promptly to ensure uninterrupted air services and maintain trust in the aviation ecosystem.

Also Read: Emirates Teams Up With IATA And Airbus For Cutting-Edge Pilot Training

As travel demand grows and technology advances, these IATA updates on air travel point towards a more integrated, efficient, and sustainable future for flyers around the globe.

Cover Image Courtesy: Wikipedia

First Published: June 02, 2025 7:33 PM