24hoursworld

Airlines in the world: net profits expected to reach US$25.7 billion in 2024

Airlines in the world: net profits expected to reach US$25.7 billion in 2024

The International Air Transport Association (IATA) announced that he is expected toNet profits of the airline industry will reach US$25.7 billion in 2024 (2.7% net profit margin). This is a slight improvement over 2023, which is expected to show a net profit of $23.3 billion (a net profit margin of 2.6%).

On the other hand, according to the entity, it is expected that Airline industry operating profits reach $49.3 billion in 2024 from $40.7 billion in 2023 and total revenue in 2024 to grow 7.6% year over year to a record $964 billion.

Expenditure growth is expected to be slightly lower, at 6.9%, for a total of US$914 billion, and it is also projected that Some 4.7 billion people will travel in 2024, an all-time high that exceeds the pre-pandemic level of 4.5 billion recorded in 2019.

Regarding cargo volumes, they are expected to be between 58 and 61 million tons in 2023 and 2024, respectively.

“People love to travel and that helped airlines to return strongly to pre-pandemic connectivity levels. The speed of recovery was extraordinary; However, it also appears that the pandemic cost aviation about four years of growth. Starting in 2024, The outlook indicates that we can expect more normal growth patterns for both passengers and cargo“, said Willie WalshDirector General of IATA.

“Industry profits need to be put into proper perspective. While the recovery is impressive, a net profit margin of 2.7% is well below what investors in almost any other industry would accept. Of course, many airlines are doing better than that average and many are struggling,” Walsh said.

The outlook for 2024

Overall revenue in 2024 is expected to grow faster than expenses (7.6% vs. 6.9%), strengthening profitability. In turn Operating profits are expected to increase 21.1% (from $40.7 billion in 2023 to $49.3 billion in 2024)net profit margins increased at less than half the pace (10%) largely due to rising interest rates expected in 2024.

As for the industry’s income, it is expected to reach an all-time high of US$964 billion in 2024. The inventory will be US$40.1 million flights available in 2024, exceeding the level of US$38.9 million in 2019 and above the US$36.8 million flights expected in 2023.

Passenger revenues are expected to reach US$717 billion in 2024, 12% more than US$642 billion in 2023. Revenue passenger kilometers (RPK) growth is expected to be 9.8% year-on-year.

“While this is more than double the pre-pandemic growth trend, 2024 is expected to mark the end of dramatic year-on-year increases that have been characteristic of the recovery in 2021-2023″, they specified from IATA.

They added: “High travel demand, coupled with limited capacity due to persistent supply chain issues, continues to create supply and demand conditions that support performance growth.”. Passenger throughput in 2024 is expected to improve by 1.8% compared to 2023″.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts