IATA: Airline industry to generate net profit of USD9.8bn in 2023

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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.

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Devender was born in the year when the Beatles Group was formed. He holds two master’s degrees in English Literature and Public Administration. He also has an Honors degree in English Literature and a post-graduate diploma in Corporate Communications and Public Relations. He was closely associated with the Indian State Transport Undertakings and Ministry of Transport in his role as Corporate Communications and PR specialist for over two decades handling domestic and international organizations. He ventured into business forming his own Media House, Profiles Media Network Private Limited which is now a twenty years old company. Excelling as an editor, Marketing, PR, Anchor, and Advertising specialist, he is now expertly navigating the world of social media. A widely traveled professional internationally, Devender has a deep understanding of the Air Cargo, Cargo Business, Cargo Airports, Freighters and Cargo Industry at large.