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IATA, in its Quarterly Air Transport Chartbook for 2Q2023, reported (31-Aug-2023) the following airline financial performance highlights:
- After posting a historic loss of around USD140 billion in 2020, the industry is expected to return to profitability in 2023, underpinned by firm consumer demand and a complete reopening of markets in the Asia Pacific region;
- Airline financial performance continues to improve across all regions, reaffirming the resilience of the industry;
- Recovery profiles vary from region to region, with not all regions expected to break even in 2023;
- The global industry is expected to generate a net profit of USD9.8 billion in 2023, with a “modest” 1.2% net profit margin. This translates to an expected profit of USD2.25 per passenger;
- Financial performance continues to be led by North American carriers, which are expected to post a net profit in excess of USD10 billion in 2023. Europe and Middle East airlines are also likely to be profitable in 2023, with other regions continuing to show improved financial performance, moving towards a return to profitability;
- The generally positive industry financial outlook is supported by the latest findings of the IATA quarterly Business Confidence survey. 73% of respondents indicated that they expect profitability to improve further over the next 12 months.
IATA said while the financial recovery is “impressive”, there is room to improve the airline industry’s “financial robustness” through stronger balance sheets and more secure profit margins.
