Global airlines are expected to reach record revenues of $996 billion and carry a record 4.96 billion passengers in 2024, according to new projections of the International Air Transport Association (IATA).
Net profits are forecast to reach $30.5 billion in 2024, indicating a net profit margin of 3.1 percent, while passenger performance is expected to strengthen by 3.2 percent in 2023. .
«In a world of many and increasing uncertainties, airlines continue to shore up their profitability. “The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses,” said IATA Director General, Willie Walshit’s a statement.
“With a record five billion travelers expected by 2024, the human need to fly has never been stronger,” he added.
IATA anticipates that airlines will operate 38.7 million commercial Flights this year, 1.4 million below previous estimates in December 2023 due to delays in aircraft delivery.
“The airline industry is on the path to sustainable profits, but there is still a big gap to fill. A 5.7% return on invested capital is well below the cost of capital, which is higher than 9%. And earning just $6.14 per passenger is an indication of how meager our earnings are – barely enough for a coffee in many parts of the world,” Walsh said.
“To improve profitability, resolving supply chain issues is vitally important so we can efficiently deploy fleets to satisfy the demand«, he indicated.
North America is expected to be the most profitable region with a net profit of around $14.8 billion, followed by Europe with approximately $8.6 billion.
“Strengthening airline profitability and increasing financial resilience is important. Profitability allows us to invest in products to meet our customers’ needs and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050,” added Walsh.
