IATA, the International Air Transport Association, has raised expectations for 2023 and voiced optimism for increased airline industry profitability in the coming year.
IATA also stated that the airline industry’s net earnings are anticipated to increase by more than twofold, from $4.7 billion in December 2022 to $9.8 billion in 2023 (1.2 percent net profit margin).
Additionally, it stated that operating profits for the aviation sector were anticipated to reach $22.4 billion in 2023, a significant increase from the $3.2 billion operational profit prediction made in December.
It is more than twice as large as the $10.1 billion operational profit target for 2022. Approximately 4.35 billion people are anticipated to fly in 2023, which is on pace to surpass the 4.54 billion individuals who flew in 2019, it also stated that cargo volumes are expected to be 57.8 million tonnes, which has slipped below the 61.5 million tonnes carried in 2019 with a sharp slowing of international trade volumes.
IATA also stated that total revenues are expected to grow 9.7 per cent year over year to $803 billion, noting that this is the first time that industry revenues will top the $800 billion mark since 2019 ($838 billion) and expense growth is expected to be contained to an 8.1 per cent annual increase.
“Airline financial performance in 2023 is beating expectations.