The International Air Transport Association (IATA) stated on Wednesday that although airlines anticipate record passenger numbers and income in 2024, they will still be restricted by high capital costs and scarce capacity.
A marginal gain over this year’s upwardly revised prediction of $23.3 billion net profit and 2.6% margin, the industry organisation projects the sector’s net profits to reach $25.7 billion in 2024 on a 2.7% net profit margin.
The airline industry has largely recovered from the unprecedented hit suffered during the Covid-19 pandemic, when planes were grounded and travel was banned for extended periods in most countries around the world. In a statement, IATA Director General Willie Walsh said that in the wake of the major losses suffered in recent years, the expected stabilisation of profits in 2024 was a “tribute to aviation’s resilience.” Total revenues in 2024 are expected to grow 7.6% year-over-year to a record $964 billion, with roughly 4.7 billion people expected to travel in 2024—a figure that exceeds the pre-pandemic level of 4.5 billion shown in 2019.
The recovery has happened incredibly quickly, but it also seems like the epidemic has halted the rise of aircraft by around four years. According to the forecast, growth trends for both passengers and cargo should return to normal starting in 2024, according to Walsh’s statement.
Wednesday’s full-year results from Anglo-German travel company Tui, which reported a 139% growth in underlying profits before interest and taxes (EBIT), demonstrated the resurgence of post-pandemic consumer demand. The group also predicted that EBIT (profits before interest and taxes) would climb by 25% in 2024, which would cause the company’s share price to soar.
Source (CNBC)
