Aviation industry net revenue will reach $9.8 billion by 2023, more than double the previous December forecast of $4.7 billion.
The International Air Transport Association (IATA) has doubled its forecast for airline industry revenues by 2023 (from $4.7 billion to $9.8 billion). This was reported by the press service of the association.
Thus, according to the forecast, the aviation industry’s net income will reach $9.8 billion in 2023, which is more than double the previous December forecast of $4.7 billion.
Total industry revenue is expected to increase 9.7% year over year to $803 billion.
It was noted that this was the first time since 2019 ($838 billion), when industry revenues exceeded $800 billion.
About 4.35 billion people are also expected to take air travel this year, up from 4.54 billion in 2019.
At the same time, the volume of cargo transportation was at the level of 57.8 million tons, lower than the 61.5 million tons transported in 2019, which is associated with a sharp slowdown in international trade.
According to IATA CEO Willy Walsh, several factors contribute to the increase in profitability. So, China lifted restrictions due to COVID-19 earlier than expected. Freight revenues remain above pre-pandemic levels, although volumes have not increased. Aviation fuel prices, while still high, decreased in the first half of the year.
However, there are also risks to the prediction. It is noted that different countries struggle with inflation at different rates. An earlier or lower completion of rate hikes by the central bank could nudge markets towards a better year-end outlook.
In addition, the risk of a recession remains. If the recession results in job losses, the outlook for the industry could worsen.
It is also reported that global trade and business continue to be affected by supply chain problems. Airlines have been hit by disruptions in the supply chain of aircraft parts that aircraft and engine manufacturers have been unable to close. This negatively affects the supply of new aircraft and the ability of airlines to maintain and deploy existing fleets.
To recall, Singapore Airlines received a record annual profit and will pay staff a bonus equivalent to eight months’ salary.
It was previously reported that German airline Lufthansa has scheduled the cancellation of around 34,000 flights for the summer season due to staff shortages.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.