Airlines forecast 4.35 billion passengers in 2023, nearly 2019 record

Airlines forecast 4.35 billion passengers in 2023, nearly 2019 record

2023-06-05 10:13:09

Airlines expect to carry 4.35 billion passengers worldwide this year, not far from the record of 4.54 billion in 2019, before the Covid-19 pandemic, the Transport Association announced on Monday (June 5). international airline (IATA), meeting in general assembly in Istanbul.

This vigorous recovery in traffic, thanks in particular to the reopening of China, will result in a return to profits for carriers. They are expected to make $9.8 billion in net profit this year – double what IATA had previously predicted, which has also halved its loss estimates for 2022 to $3.6 billion. .

Overall airline revenue is expected to reach $803 billion, within reach of $838 billion in 2019, according to the main airline association, which has therefore revised its figures upwards. previous screenings in december (779 billion).

Even though industry operating margins will remain very low this year, at 1.2%, these profits, the first since the start of the pandemic, will mark a dramatic improvement from the $42 billion lost in 2021 and the sinkhole. of 2020 (137.7 billion).

Inequalities between geographical areas

Not all geographies will return to profit this year, however, IATA warned. North American, European and Middle Eastern carriers are expected to be largely in the green, with cumulative 11.5 billion, 5.1 billion and 2 billion dollars respectively.

But companies in the Asia-Pacific region (-6.9 billion dollars), Latin America (-1.4 billion) and Africa (-500 million) will remain in deficit this year, the association warned.

“Airlines’ financial performance is better than expected. Stronger profitability is supported by several positive developments: China lifted Covid-19 restrictions earlier than expected. Freight revenues remain higher than before the pandemic, although volumes do not. And the costs are starting to come down. Kerosene prices, still high, contracted during the first half of the year »said Willie Walsh, the director general of IATA.

Read also: Article reserved for our subscribers The plane, guilty pleasure of the eco-traveler

The World with AFP

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