MONTREAL: Airlines will fly nearly five billion passengers in 2024 and revenues will soar close to $1 trillion, both record highs, International Air Transport Association (IATA) said on Monday as the industry roars back after the pandemic.
IATA also anticipates that global airlines will achieve a net earnings of $30 billion this year, up from the previous estimate of $25.7 billion. However, total expenses are predicted to reach a record high of $936 billion, marking a 9.4 percent increase.
While acknowledging the significant recovery from pandemic losses, IATA Director General Willie Walsh emphasized the importance of strengthening airline profitability and financial resilience. The COVID-19 crisis caused substantial losses totaling $183 billion between 2020 and 2022, but the industry is now experiencing a resurgence in passenger numbers and revenues.
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Despite this optimistic outlook, challenges such as high expenses, lower returns on invested capital, and rising costs due to shortages of parts, labor, and climate change-related issues persist. Dubai’s recent airport closure due to severe flooding highlighted the vulnerability of infrastructure to extreme weather events possibly intensified by global warming.
Furthermore, incidents like in-flight turbulence and accidents underscore the ongoing concerns about climate change’s impact on aviation safety.
