DUBAI, June 2 (Reuters) – On Monday, global airlines increased their 2024 profit forecast. They anticipate industry-wide revenues approaching $1 trillion due to surging traveler numbers.
The International Air Transport Association (IATA) projects a $30.5 billion profit for the global airline industry this year. This exceeds the revised $27.4 billion profit from 2023.
That comes just four years after the industry collapsed to a $140 billion loss in 2020 as a result of the pandemic.
Director General Willie Walsh, speaking to Reuters at an IATA meeting, noted a better-than-expected environment, especially in Asia. The meeting includes over 300 members, representing over 80% of global air traffic.
However, the airline industry warned its ability to serve a strong rebound in travel demand is being hampered by disruption to global supply chains, including deliveries of its own fleets.
Passenger yields – or the average amount paid by a passenger to fly one mile – are expected to strengthen by 3.2% compared with 2023, IATA said in a twice-yearly economic outlook. In part, that is because capacity growth is constrained, driving up average fares.
By contrast, the corresponding figure for cargo is expected to fall 17.5% in 2024 as freight markerts return towards normal patterns after booming during the pandemic.
Airline activity is widely seen as a litmus test for business or consumer confidence, as well as trade.
Looking ahead, the global airlines outlook remains subject to external factors and uncertainties. Transitioning from recovery to sustainable growth, airlines must remain agile and adaptable.
Moreover, Global airlines outlook hinges on factors such as fuel prices, geopolitical tensions, and regulatory changes.
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