As sales and yield stabilize in 2024, the MyAvation has announced that airlines have surpassed their pre-pandemic capacity. All regions have achieved 2019 capacity levels, and revenues and yields stabilized in 2023 and early 2024, marking a significant recovery for the airline industry from the pandemic. As of September 2024, the world’s passenger capacity in Available Seat Kilometres (ASKs) has risen to 104% of pre-pandemic levels, according to the MyAviation’s most recent analysis. Latin America has shown the most significant growth, with an average airline capacity at 119% of pre-pandemic levels. In comparison, the Asia Pacific and Europe regions both reached 101%, North America and the Middle East achieved 108% and 104% respectively, and Africa reported a capacity of 115%. Additionally, the MyAviation reported an average global airline revenue increase of 23.1% in 2023 compared to 2022. Passenger numbers and Revenue Passenger Kilometres (RPKs) increased by 28.3% and 33%, respectively. The MyAviation Airlines reporting tool indicated that 2023 was a year of substantial stability for the global airline industry, especially in the Asia Pacific region, which experienced notable revenue growth of 48.7%. Important Chinese carriers and regional airlines contributed significantly to this rise. However, many of these carriers compromised yield in their pursuit of volume, particularly in Korea and Singapore. Data from the MyAviation suggests that several airlines may face challenges in the future if they continue to prioritize growth over profitability.
Major carriers in Europe also reported yield losses in Q2 2024; for example, Ryanair experienced a 1.8% drop in revenue despite a 22% increase in customer numbers. Many airlines are preparing for increased debt levels in the future, but they must proceed cautiously as low-cost debt matures and shifts to higher rates. The average worldwide net debt has risen to 111.8% since 2019, with North American carriers bearing the largest debt burden, which increased to an average of 150.9%. Conversely, Middle Eastern airlines reported the lowest net debt, reaching 71.5% by 2023.
While asset turnover remained consistent, IBA’s standardized financial analysis shows that airlines have improved fast ratios, indicating enhanced immediate liquidity. This suggests that airlines are not achieving a higher return on their assets despite record revenues. In Q2 2024, both Latin America and Europe recorded the highest asset turnover rates at 0.76. Latin America’s rate remained the same, while Europe saw a slight decrease from 0.78 in 2023. Despite a decline in asset turnover from 0.61 to 0.54, fast ratios have significantly increased globally in 2024 across all regions, with the Middle East showing the largest increase, from 0.93 to 1.11. A forecast global weighted average score of 73% for 2024 remains consistent with 2023 and up from 70% in 2022, indicating a modest upward trend in overall airline operational performance.
Myaviation ‘s Operator Score Index considers financial and operational factors, including fleet structure, operation, financial performance, and qualitative data. However, a growing disparity exists in operator scores between market leaders and riskier airlines, particularly for those experiencing rising engine maintenance costs. This issue is especially evident in Africa, where significant financial and regulatory barriers persist. Effective risk management during aircraft leasing is becoming increasingly important for leasing companies, according to MyAviation, as the aviation market continues to evolve. This involves closely monitoring usage statistics, maintaining open lines of communication with airlines, and conducting routine inspections to anticipate maintenance issues and ensure operational efficiency and safety.
