After 2 years of being hit hard by the Covid-19 pandemic, the global aviation industry is predicted to experience a strong recovery.
The global aviation industry will return to profitability in 2023. Photo: Airline Ratings.
The International Air Transport Association (IATA) says airlines around the world lost tens of billions of dollars in 2020 and 2021 due to the pandemic, but air traffic has partially recovered.
IATA expects the net profit of the global airline industry to reach USD 4.7 billion next year, with more than 4 billion passengers expected. Previously, this organization predicted to be profitable only in 2023.
For 2022, IATA has lowered its industry-wide loss forecast from USD 9.7 billion to USD 6.9 billion.
Willie Walsh, general manager of IATA, said: “The profitability of the airline industry next year will be a huge achievement as the industry has suffered a lot over the past two years”.
However, the former head of British Airways and IAG also warned that many airlines are likely to continue to struggle next year. This is due to new immigration rules, high costs and inconsistent government policies.
The former director of British Airways and IAG said: “Airlines should be wary of raising taxes or infrastructure charges, including those “in the name of sustainability” by governments and other organisations”.
IATA said its profit forecast is based on China’s gradual reopening to the world as it eases domestic restrictions on COVID-19. If that doesn’t happen, airline profits will suffer.
“Another risk to the 2023 outlook is that some economies may slip into recession,” IATA said.
@ Zing News