The International Air Transport Association (IATA) announced on Wednesday that airline profits are expected to stabilize in 2024. For 2023, net profit for the year is projected to reach $23.3 billion on a 2.6% margin, while in 2024, net profit is set to rise to $25.7 billion and a margin of 2.7%.
Despite projections of rising profits, the IATA warned that growth remains limited due to high capital costs and capacity constraints of several airlines following the pandemic. “Industry profits must be put into proper perspective,” IATA’s head Willie Walsh stated. “On average airlines will retain just $5.45 for every passenger carried. That’s about enough to buy a basic grande latte at a London Starbucks.”
Next year, the number of international travelers is expected to hit record levels. 4.7 billion people are expected to travel, thereby exceeding the previous high of 4.5 billion in 2019. Still, many countries are significantly below pre-pandemic levels, with China’s travel still 40% lower than 2019.
