Global airlines are expected to achieve record revenue this year and will continue this growth trend in 2024.
The Zhitong Finance app learned that as the aviation industry escapes the impact of the pandemic, global airlines are expected to achieve record revenue this year and continue this growth trend in 2024, even though rising interest rates hinder profit growth. The International Air Transport Association (IATA) said on Wednesday that the airline industry's net profit is expected to reach 23.3 billion US dollars this year, more than double the agency's expectations in June and nearly five times what it expected at the beginning of this year. IATA expects that by 2024, revenue will increase 7.6% from this year's $896 billion to $964 billion, and net profit will rise slightly to $25.7 billion. The agency said that rising interest rates are driving up the cost of capital.
The windfall benefits of rising air freight prices are gone. IATA expects cargo revenue to fall to US$111 billion by 2024, far below the peak of US$210 billion in 2021, but still higher than US$101 billion in 2019.
IATA Director General Willie Walsh said in a statement: “Starting in 2024, the outlook indicates that we can expect a more normal growth pattern for passenger and freight traffic.”
The agency predicts that the number of global passengers will reach 4.7 billion in 2024, a record high, surpassing the 4.5 billion before the 2019 pandemic.