Airlines are anticipated to turn a profit in 2019 for the first time since the COVID-19 pandemic devastated the travel industry in 2019, according to information released by the International Air Transport Association (IATA) on Tuesday.
By 2023, after cutting their losses, airlines will generate net profits of $4.7 billion, according to IATA.
The $26.4 billion profit the sector reported in 2019 before the viral disease led to countries enacting travel restrictions is still a long way off.
IATA’s director general, Willie Walsh, said in a statement that airlines handled the COVID-19 crisis well by accepting the losses.
The first industrial profit since 2019 will signal the start of the economic recovery in 2023. Given the magnitude of the financial and economic harm caused by the pandemic prohibitions, he thought this was an impressive accomplishment.
Next year, it is predicted that airline revenues will total $779 billion.
According to Walsh, many airlines are “sufficiently profitable” to draw investment for the sector’s decarbonization efforts.
He argues that a lot of people are still having difficulty as a result of onerous regulations, expensive and contradictory government policies, inadequate infrastructure, and a value network where the benefits of connecting the world are not distributed fairly.
Passenger traffic in 2022 was marginally less than anticipated as a result of China’s absence of COVID-19 restrictions and slowing economies.
In 2023, the IATA projects that passenger traffic will reach pre-crisis levels to an extent of 85,5%.
