Aviation industry anticipates even higher profits in 2023 than initially expected
The aviation industry is anticipating even higher profits for the current year than initially expected. The International Air Transport Association (Iata) has estimated the airlines' cumulative operating profit for 2023 at 23.3 billion dollars - more than twice as much as the 9.8 billion dollars forecast in June. For the coming year, Iata expects even better figures and a new passenger record of 4.7 billion.
For the current year, the industry association has even revised the number of passengers slightly downwards: from the 4.35 billion forecast in June to 4.29 billion in the end. The high profits can be explained above all by the sharp rise in prices. Demand for airline tickets was often higher than capacity. Meanwhile, it was often not possible to further expand the flight offering due to a lack of aircraft and personnel.
For 2024, the association expects profits in a similar order of magnitude of 25.7 billion dollars. In terms of total revenue, the industry is expecting a new record of 964 billion dollars. In the current year, airlines are expected to turn over 896 billion dollars.
The previous record for passenger numbers dates back to the pre-coronavirus year of 2019, when 4.54 billion people traveled by plane. Revenue at that time amounted to 838 billion dollars.
During the coronavirus crisis from 2020 to 2022, airlines incurred losses of 183 billion dollars. Iata Director General Willie Walsh now spoke of an "extraordinary pace of recovery". However, the pandemic had "cost the industry four years of growth". From 2024 onwards, "more normal growth rates can be expected, both in terms of passengers and freight".
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Despite the slight decrease in projected passengers for 2023, the aviation industry is still on track for record-breaking profits, with Iata estimating a cumulative operating profit of 23.3 billion dollars. Moreover, the industry anticipates even higher profits in 2024, potentially surpassing the 2023 figures, thanks to the high demand and increased prices in the 'Win' season.
Source: www.ntv.de
