Flying in the face of a global cost-of-living crisis, the world airline industry has revealed it expects a net profit of $35.6b which is predicted to go even higher in 2024.
The International Air Transport Association (IATA) which represents over 300 airlines around the world including both Qantas and Virgin Australia forecasted a 2.78 per cent net profit increase in 2024,.
“Considering the major losses of recent years, the $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience,” director general, IATA, Willie Walsh, said.
“People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity.
The speed of the recovery has been extraordinary, yet it also appears that the pandemic has cost aviation about four years of growth.
“From 2024 the outlook indicates that we can expect more normal growth patterns for both passenger and cargo.”
Key factors influencing market:
- Overall revenue – expected to hit a historic high in 2024.
- Passenger revenue – ongoing demand means a predicted 12 per cent increase on 2023.
- Cargo revenue – expected to drop on ’23 numbers but still up on ’19.
- Expenses – expected to grow 6.9 per cent.
- Fuel price – accounts for 31 per cent of operating costs.
- Other expenses – total cost over $950 billion.
Asia Pacific round up:
While some of the region’s main domestic markets (China, Australia and India) recovered quickly from the pandemic, international travel to/from the region was subdued as China only eliminated the last of its international travel restrictions in mid-2023.
China’s international travel remains 40 per cent below pre-pandemic levels and the region is expected to post a small loss in 2023, turning to a profit in 2024.
