Business & Economy

Airlines projected to earn $9.8 billion profit, the first since the pandemic

Istanbul, Turkey, June 5 (EFE).- The global airlines are projected to earn $9.8 billion in profit in 2023, overcoming the massive losses due to the COVID-19 pandemic, the International Air Transport Association (IATA) said on Monday.

IATA Director General Willie Walsh told the general meeting of the trade association of the world’s carriers that the civil aviation revenues were expected to reach $803 billion this year.

He indicated that margins were, however, wafer thin.

“With $803 billion of revenues, airlines will share $9.8 billion in net profit this year,” he said.

Walsh said this would mean that airlines would make, on average, $2.25 per passenger, adding that the value retained for the average plane trip would not even buy a subway ticket in New York City.

“Clearly that level of profitability is not sustainable. But considering we lost $76 per passenger in 2020, the velocity of the recovery is strong.”

Nonetheless, Walsh said the pandemic years were behind us, and borders were open as normal.

“Despite economic uncertainties, people are flying to reconnect, explore, and do business.”

He said the latest data showed passenger traffic was at over 90 percent of 2019 levels.

“Airports are busier, hotel occupancy is rising, local economies are reviving, and the airline industry has moved into profitability.”

Walsh, however, warned that challenges remained.

“Inflation continues, cost pressure is acute, and in some areas, labor is in short supply. Unfortunately, many of those we do business with are adding to these pressures.”

He said supply chain disruptions and rising airport charges had hit the aviation recovery.

“OEM suppliers have been far too slow in dealing with supply chain blockages that are both raising costs and limiting our ability to deploy aircraft. Airlines are beyond frustrated. A solution must be found.” EFE


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