Despite significant economic uncertainties and geopolitical tensions, International Air Transport Association (IATA) projections show that airlines will generate $9.8 billion in net earnings this year, a financial performance that IATA director general Willie Walsh described as “beating expectations.” In December, the IATA projected a global industry net profit of $4.7 billion. The association contributes the higher profitability projection to China lifting its stringent Covid-19 restrictions earlier in the year than anticipated, strong cargo revenues, and, on the cost side, a moderation of jet fuel prices. “Airlines are en route to a profitable, safe, efficient, and sustainable future," Walsh said Monday at the IATA annual general meeting in Istanbul. "The pandemic years are behind us.”
The net profit equates to $2.25 per passenger. “So, the value retained by airlines for the average plane trip won’t even buy a subway ticket in NYC," Walsh noted. "Clearly, that level of profitability is not sustainable. [But] considering we lost $76 per passenger in 2020, the velocity of the recovery is strong.”
More In Airlines
