According to the International Air Transport Association (IATA), the airline industry is projected to achieve a net profit of USD 9.8 billion in 2023, driven by the recovery in passenger traffic and the revival of local economies. Willie Walsh, the Director General of IATA, stated that despite lingering economic uncertainties, people are increasingly flying for various purposes such as reconnecting, exploring, and conducting business. He noted that the latest data indicates that passenger traffic has surpassed 90% of the 2019 levels.
Speaking at the IATA Annual General Meeting in Istanbul, Walsh highlighted that airports are witnessing higher activity, hotel occupancy rates are rising, local economies are rebounding, and the airline industry has returned to profitability. The projected revenues for the industry in 2023 are estimated to reach USD 803 billion, with an average profit of USD 2.25 per passenger.
Although the aviation sector is recovering from the impact of the pandemic, challenges such as cost pressures and supply chain issues persist. Walsh criticized Original Equipment Manufacturers (OEMs) for their slow response in addressing supply chain blockages, which are driving up costs and hindering the deployment of aircraft. He emphasized that airlines are becoming increasingly frustrated and stressed the urgent need to find a solution to these challenges.
The positive outlook for the airline industry reflects the gradual revival of air travel demand and the gradual relaxation of travel restrictions worldwide. As more countries reopen their borders and vaccination rates increase, the industry anticipates a further recovery in passenger volumes and a return to pre-pandemic levels of activity.