Profits for global airlines likely in 2023

The International Air Transport Association (IATA) has estimated that global aviation industry losses may narrow down, from US$ 42.1 billion last year to US$ 9.7 billion in 2022. The efficiency gains and improving yields have offset the higher labour and fuel costs, thereby allowing global airlines to curtail their losses this year.

In its statement IATA said it sees a resurgence in demand with passenger numbers reaching 83% of pre-pandemic levels in 2022. The resurgence in demand will be driven by the strong pent-up demand, the lifting of travel restrictions in most markets, low unemployment in most countries, and expanded personal savings. “It is a time for optimism, even if there are still challenges on costs, particularly fuel, and some lingering restrictions in a few key markets,” it said.

It further added that the industry-wide profitability is expected in 2023 as North America is already expected to deliver a US$ 8.8 billion profit in 2022.