IATA Cuts 2025 Outlook on Trade Tensions: The Week in Aerospace

This week, the International Air Transport Association (IATA) cut its 2025 forecast amid tariff-driven uncertainty. NATO urged the European Union to boost air defense as tensions with Russia grew, while the US halted key aviation exports to China’s COMAC. Meanwhile, the United Kingdom announced a sweeping airspace overhaul, and Elon Musk reaffirmed a 2026 Mars mission despite continued Starship setbacks.

Be ready for takeoff! This is the week in Aerospace!

UK Plans Biggest Airspace Redesign in 70 Years by Late 2025

The United Kingdom is moving forward with the most extensive redesign of its airspace in over 70 years, driven by rising air traffic and increasing congestion, especially over London. The UK Department for Transport (DfT) and the Civil Aviation Authority (CAA) jointly announced the creation of the UK Airspace Design Service (UKADS), a centralized body tasked with overseeing the redesign of national airspace infrastructure. The new agency is scheduled to be fully operational by the end of 2025.

NATO Pushes European Union to Expand Air Defense Amid Russian Threats

NATO is calling on its EU member states to quintuple ground-based air defense systems, citing increasing concerns over Russian aggression. This proposal will take center stage at the defense ministers’ meeting in Brussels this week. While the collective goal applies to EU NATO nations, individual national targets will vary. Sources speaking to Bloomberg on condition of anonymity noted that a timeline for implementation has not yet been established.

AIFA Profits Rise, Yet Connectivity Limits Growth

Since its 2022 inauguration, the Felipe Ángeles International Airport (AIFA) has mobilized over 10 million passengers and achieved five consecutive quarters of operating profit. While the airport’s financial performance demonstrates steady growth, its broader market impact remains limited due to unresolved ground connectivity issues.

UK Plans 7K Missiles, Six Factories to Bolster Weapons Output

The war in Ukraine has highlighted the importance of maintaining a robust domestic weapons manufacturing capability, UK Defense Secretary John Healey said.

Musk Eyes 2026 for SpaceX Mars Mission, NASA Plans 2030s Landings

Elon Musk, CEO, SpaceX, has projected that the company could launch its first uncrewed mission to Mars by the end of 2026, despite recent test-flight failures involving its Starship spacecraft. This mission aligns with NASA's Artemis program, which aims to land humans on the Moon by 2027, using lunar missions as a precursor to eventual crewed Mars landings in the 2030s.

IATA Lowers 2025 Forecast Amid Trade Policies, Profit Concerns

IATA has revised its 2025 outlook downward, citing global economic uncertainty fueled by protectionist trade policies, particularly tariff measures announced by US President Donald Trump. The revised forecast indicates lower passenger and cargo volumes, as well as reduced industry profitability and revenue growth.

SpaceX’s Starship Reaches Space Third Time, Fails Reentry Again

SpaceX’s Starship rocket reached space for the third time but failed to complete its mission, marking the company’s ninth test flight of the heavy-lift vehicle. The launch occurred at 6:37 p.m. local time from SpaceX’s Starbase facility in southern Texas. Although the rocket successfully lifted off and achieved orbital altitude, SpaceX lost control before the scheduled reentry, resulting in what the company described as an “unplanned rapid disassembly.”

US Golden Dome Missile Plan Faces Pushback from N. Korea, Canada

The United States' proposed "Golden Dome" missile defense system has sparked strong reactions from key global actors, particularly North Korea and Canada, as it evolves into one of the most ambitious and costly defense strategies in recent history. Announced by President Donald Trump, the system is designed to counter next-generation aerial threats — such as intercontinental ballistic missiles (ICBMs), cruise missiles, and hypersonic weapons — using a network of space-based interceptors.

US Halts Aviation Exports to China’s COMAC, Impacting C919 Plans

The United States has suspended certain export licenses for the sale of critical aviation components, including jet engines, to China’s state-owned Commercial Aircraft Corporation of China (COMAC), potentially delaying the development of its C919 commercial aircraft.