International Air Transport Association (IATA) expects the aviation sector to achieve net profits of approximately $25.7bn in 2024 with a net profit margin of 2.7pc.
Willie Walsh the Glasnevin born director general of IATA told the global media day in Geneva “many airlines are doing better than that average, and many are struggling. But there is something to be learned from the fact that, on average airlines will retain just $5.45 for every passenger carried.
“That’s about enough to buy a basic ‘grande latte’ at a London Starbucks. But it is far too little to build a future that is resilient to shocks for a critical global industry on which 3.5pc of GDP depends and from which 3.05m people directly earn their livelihoods.”
“While airlines will always compete ferociously for customers, they remain far too burdened by onerous regulation, fragmentation, high infrastructure costs and a supply chain populated with oligopolies.”
The industry anticipates record numbers of travellers and revenues in 2024. Total revenues are expected to reach $964bn, a 7.6pc increase from the previous year. Around 4.7bn people are projected to travel in 2024, surpassing pre-pandemic levels.
The recovery in the aviation sector is due to the booming demand for post-pandemic travel in regions like North America, the Middle East, and Europe. High capital costs and limited capacity continue to constrain airlines.
Overall, while the recovery is remarkable, the profit margins in the industry remain relatively low, and airlines face challenges from regulations, infrastructure costs, and the structure of the supply chain.
Mr Walsh highlighted the resilience of the aviation industry and described the expected stabilisation of profits in 2024 as a tribute to its endurance.
