The airline sector’s trade body has doubled its forecast for industry profits this year to $9.8bn, after many groups reported signs of recovery in their recent results.
Carriers have benefited from a resurgence in demand to carry both passengers and freight at a time when fleet growth has been constrained by production difficulties at Boeing and Airbus.
The forecast from the International Air Transport Association compares with net losses for the industry of $3.6bn for 2022 and Iata’s forecast in December of $4.7bn in net profits for this year. Iata projected revenues for 2023 would reach $803bn, up 9 per cent on 2022.
Willie Walsh, Iata’s director-general, said that airline financial performance for the year was beating expectations, with stronger profitability supported by “several positive developments”.
“China lifted Covid-19 restrictions earlier in the year than anticipated,” Walsh said, adding that cargo revenues remained above pre-pandemic levels although volumes had not.
“On the cost side, there is some relief,” Walsh added. “Jet fuel prices, although still high, have moderated over the first half of the year.”
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