ISTANBUL - Airlines are expected to reap net profits totalling US$9.8 billion this year, more than double the previous forecast of US$4.7 billion made last December.
At its annual general meeting in Istanbul, the industry body forecast that airlines would fare better in 2023 across the major financial indicators. Before the pandemic, the industry had an average net profit margin of 4.2 per cent from 2015 to 2019.The industry body said carriers in the Middle East, North America and Europe are projected to earn higher profits than what they managed in 2022, while those in Latin America and Africa will pare down their losses.
Iata director-general Willie Walsh attributed the better-than-expected financial performance for the industry to China lifting its Covid-19 restrictions earlier in the year than anticipated, as well as how revenue from cargo stayed above pre-pandemic levels even though volumes have not recovered. He added that challenges remain, citing inflation, cost pressures and a shortage of labour in some areas.