The industry’s operating profit will reach $22.4bn this year, more than the December forecast of $3.2bn
The global aviation industry’s profit is expected to reach $9.8bn in 2023, more than double the $4.7bn forecast in December, driven by pent-up demand for air travel as the industry recovers from the impact of the Covid-19 pandemic.
The International Air Transport Association (IATA) said the return to net profitability, even with a 1.2 per cent net profit margin, is a major achievement for the industry.
The airline trade body projected that the industry’s operating profits will reach $22.4bn this year, more than the December forecast of $3.2bn. The operating profit is also more than double the $10.1bn operating profit estimated for 2022.
IATA expects some 4.35 billion passengers to travel in 2023, around 96 per cent of 2019 levels.
“Airline financial performance in 2023 is beating expectations. Stronger profitability is supported by several positive developments,” Willie Walsh, IATA’s director general said, adding that cargo revenues remain above pre-pandemic levels even though volumes have not.
“Economic uncertainties have not dampened the desire to travel, even as ticket prices absorbed elevated fuel costs. After deep Covid-19 losses, even a net profit margin of 1.2 per cent is something to celebrate!”
