Global airline industry sees return to profitability in 2023

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The International Air Transport Association now expects a net profit of $4.7-billion for the industry next year, with more than 4 billion passengers set to fly

The global airline industry will become profitable again next year for the first time since 2019 as a resurgence of air travel continues following nearly two years of COVID-19 restrictions, an industry association said on Tuesday.

But the former British Airways and IAG boss warned that many airlines will continue to struggle next year, citing regulations, high costs and inconsistent government policies – and reopening a long-running war of words with airports. Airports complain they did not get state support available to traditional carriers and have pointed the finger back at airlines in a row over the pandemic-linked travel disruption. The airport industry’s trade association was not immediately available for comment.

Beijing has begun easing draconian zero-COVID policies designed to stamp out transmission. It may announce 10 new COVID-19 easing measures as early as Wednesday, two sources with knowledge of the matter told Reuters on Monday, supplementing 20 unveiled in November.Another risk for the 2023 outlook is that some economies fall into recession, it said.

 

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