In 2024, the aviation industry will reach a record revenue of more than $1 trillion, IATA predicts. Due to sustained demand and the lifting of travel restrictions, the number of passengers could reach 5 billion. Written by UNN with reference to CNN.
The International Air Transport Association (IATA) said that the global aviation industry is likely to generate more than $1 trillion in revenue in 2024, as passenger numbers could reach a record high of 5 billion.
IATA predicts that the average profit of airlines per passenger will increase to $7, which is significantly higher than the $2.25 figure of a year and a half ago. For 2023, this figure is estimated at $6.40.
These achievements demonstrate the industry's rapid recovery from the pandemic, which caused losses of nearly $187 billion between 2020 and 2022. The recovery has been made possible by the lifting of travel restrictions and sustained demand, which has allowed many carriers to raise ticket prices.
Among the regions, airlines in the Middle East ($24 per passenger), the United States ($12), and Europe ($9) are expected to make the highest profits in 2024. On the other hand, air carriers in Africa, Latin America, and Asia-Pacific will remain less profitable than the industry average.
In pre-recorded comments, IATA CEO Willie Walsh called the “huge” revenue figure “great news.” He added, however, that the industry's net profitability would still be “thin” at $36.6 billion - and that it would not be helped by delays in aircraft deliveries by “key players,” referring to aircraft manufacturers Airbus and Boeing (BA).
Supply chain issues have a very significant impact on our cost base... And there is no end in sight to this problem,” he said.
The chronic shortage of aircraft forces airlines to operate older, less efficient models for longer, which increases maintenance and operating costs and has a negative impact on the environment.
Global conflicts also cause costs to rise, as the closure of large swaths of airspace forces carriers to take longer routes. This not only increases flight times, but also creates delays due to the limited amount of available airspace for an increasing number of flights.
According to IATA CEO Willie Walsh, the change of government in the United States could complicate the industry's efforts to achieve zero carbon emissions by 2050. He noted that the benefits gained under the Biden administration, such as tax incentives for the production of clean jet fuel under the Inflation Reduction Act, could be revised or revoked if Donald Trump returns to power.
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