Monday, June 3, 2024 The International Air Transport Association (IATA) has revised its projections for airline profitability in 2024, expecting stronger results compared to its forecasts in June and December 2023. Despite this, the global airline industry still struggles to achieve an aggregate return exceeding the cost of capital. Here are the key points from the outlook: “In a world of many and growing uncertainties, airlines continue to shore-up their profitability.
The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses. With a record five billion air travelers expected in 2024, the human need to fly has never been stronger.
Moreover, the global economy counts on air cargo to deliver the $8.3 trillion of trade that gets to customers by air. Without a doubt, aviation is vital to the ambitions and prosperity of individuals and economies.
Strengthening airline profitability and growing financial resilience is important. Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050,” said Willie Walsh , IATA’s Director General. “The airline industry is on the path to sustainable profits, but there is a big gap still to cover.
A 5.7% return on invested capital is well below the cost of capital, which is over 9%. And earning just $6.
14 per passenger is an indication of just how thin our pr.
