This year, global airlines expect revenues of more than $1 trillion, and the number of travelers will reach a record 5 billion.
The announcement was made at a general meeting of the International Air Transport Association (IATA), which also estimates that net profits will reach $30.5 billion in 2024, up from $27.4 billion in 2023, upping its previous forecast of $25.7 billion. .
Passenger yield – or the average amount a passenger pays per flight per mile, i.e. tickets – is expected to rise 3.2% from 2023, according to IATA. This is partly due to the fact that capacity growth is limited, causing average fares to rise. Conversely, freight yields are expected to decline 17.5% in 2024 as freight markets return to normal after surging during the pandemic.
The industry has high fixed costs and regulations that prevent most cross-border mergers, meaning it remains fragmented. “Margins are still very thin; We still expect margins to be just over 3%, which is well below where the industry should be,” IATA CEO Willie Walsh told Reuters.
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