The International Air Transport Association (IATA) shared positive news for the airline industry on June 3, 2024. They have revised their forecast for airline profitability, indicating a steady recovery after the global pandemic. IATA now predicts a net profit of $30.5 billion for 2024, up from their previous forecast of $25.7 billion in December 2023 and an improvement over the net profit of around $27.4 billion in 2023. The increase in profitability is driven by growth in both operating and net profits.
Operating profits are expected to grow by 14.5%, while net profits are expected to grow by 11.3%. Revenues and expenses are projected to increase by 9.7% and 9.4%, respectively. The expected net profit margin for 2024 is 3.1%, compared to 3.0% in 2023 and 2.7% as predicted in December 2023.
This improvement is attributed to increasing demand for air travel. IATA Director General Willie Walsh emphasized the resilience of the industry and the enduring demand for air travel. He also highlighted the importance of profitability in driving investments in sustainability solutions to achieve net zero carbon emissions by 2050. In 2024, the airline industry is expected to generate record revenues of $996 billion, driven by passenger income, which is projected to reach $774 billion. Additionally, the number of passengers is expected to increase to 4.96 billion. Consumer confidence in air travel remains high, with 77% of participants in an IATA public opinion survey believing that flying provides good value for money. While cargo earnings are predicted to decrease from $138 billion in 2023 to $120 billion in 2024, this is seen as a return to normal levels following the unusual highs during the pandemic.
