This week, San Francisco International Airport (SFO) wraps up the phased opening of the $2.4 billion Harvey Milk Terminal 1.
IATA Strengthens Profitability Projections for Airlines in 2024
04.06.2024 - 16:26 / travelpulse.com / Willie Walsh / Patrick Clarke
Global airlines are expected to achieve record revenue of $996 billion and fly a record-high 4.96 billion passengers in 2024, according to new projections from the International Air Transport Association (IATA).
Net profits are forecast to reach $30.5 billion in 2024, signaling a 3.1 percent net profit margin, while passenger yields are expected to strengthen 3.2 percent over 2023.
"In a world of many and growing uncertainties, airlines continue to shore-up their profitability. The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses," IATA's Director General Willie Walsh said in a statement. "With a record five billion air travelers expected in 2024, the human need to fly has never been stronger."
IATA anticipates that airlines will operate 38.7 million commercial flights this year, a figure that's 1.4 million below previous estimates in December 2023 due to aircraft delivery delays.
"The airline industry is on the path to sustainable profits, but there is a big gap still to cover. A 5.7 percent return on invested capital is well below the cost of capital, which is over 9 percent. And earning just $6.14 per passenger is an indication of just how thin our profits are—barely enough for a coffee in many parts of the world," said Walsh. "To improve profitability, resolving supply chain issues is of critical importance so we can deploy fleets efficiently to meet demand."
North America is projected to be the most profitable region with a net profit of around $14.8 billion, followed by Europe at approximately $8.6 billion.
"Strengthening airline profitability and growing financial resilience is important. Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050," added Walsh.
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