Airline profits are expected to rebound strongly when the reports for 2023 are filed, almost reaching pre-pandemic levels, according to the KPMG Aviation Leaders Report 2024. The US market has been a significant driver of profitability, followed by European airlines.
While industry faces macroeconomic and geopolitical challenges, such as rising oil and labour costs, the general expectation is that airline performance will remain robust in 2024. The Asian recovery is expected to offset any potential slowdown in the US market. Aircraft leasing companies are experiencing high demand, with lease extensions at record levels, driving growth and shareholder returns for larger lessors.
Asia-Pacific faced challenges in 2022 due to travel restrictions in China, but with restrictions lifted, the region has experienced a strong recovery in 2023, surpassing 2019 levels of air travel.The report says that, despite additional debt taken on during the pandemic, airline failures have remained relatively low compared to historical norms. High load factors and robust pricing, fuelled by pent-up demand and increased
