SINGAPORE - The aviation industry is expected to make a net loss of only 1.2 per cent in revenue this year, and should turn a profit as early as next year as air travel continues to rebound more strongly than previously expected.
"People who longed for the freedom to fly are taking to the skies again - and in growing numbers. By next year, most markets should see traffic reach or exceed pre-pandemic levels," Mr Walsh said. In October, before the war in Ukraine broke out, Iata had said airlines would lose US$11.6 billion this year. The new figure shaves this by US$1.9 billion despite arguably more challenging circumstances, with a war and fuel prices - airlines' single largest source of expenditure - expected to increase by 50 per cent this year.
"When you look at the average growth that we would have witnessed in the 10 years between 2010 and 2019, it would have been less than on average," he said."Prior to the crisis, the industry's financial foundations were at their strongest point ever."China's continued closure and the slower opening up of border restrictions in the Asia-Pacific means passenger traffic in the region continues to languish at about 22 per cent of pre-Covid-19 levels.
Mask mandates for passengers in airplanes should also be removed, he said, since air in the cabin is refreshed every two to three minutes, much more frequently than for most indoor settings.
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