IATA: Airline net profits expected to reach USD9.8bn in 2023
IATA announced (05-Jun-2023) an expected strengthening of airline industry profitability in an upgrade of its outlook for 2023. Highlights include:
- Airline industry net profits are expected to reach USD9.8 billion in 2023 (1.2% net profit margin), more than double the previous forecast of USD4.7 billion in Dec-2022;
- Airline industry operating profits are expected to reach USD22.4 billion in 2023, improved over the Dec-2022 forecast of a USD3.2 billion operating profit. It is also more than double the USD10.1 billion operating profit estimated for 2022;
- Around 4.35 billion people are expected to travel in 2023, approaching the 4.54 billion who flew in 2019;
- Cargo volumes are expected to be 57.8 million tonnes, which has slipped below the 61.5 million tonnes carried in 2019 with a sharp slowing of international trade volumes;
- Total revenues are expected to grow 9.7% year-on-year to USD803 billion. This is the first time that industry revenues will exceed USD800 billion since the 2019 level of USD838 billion. Expense growth is expected to be contained to an 8.1% annual increase.
IATA director general Willie Walsh stated: "Airline financial performance in 2023 is beating expectations. Stronger profitability is supported by several positive developments". Mr Walsh said: "Economic uncertainties have not dampened the desire to travel, even as ticket prices absorbed elevated fuel costs". He added: "Repairing damaged balance sheets and providing investors with sustainable returns on their capital will continue to be a challenge for many airlines". [more - original PR]