KUALA LUMPUR, Dec 6 — The airline industry’s net profit is expected to reach US$25.7 billion (US$1=RM4.67) in 2024, accounting for 2.7 per cent in net profit margin, said the International Air Transport Association (IATA).
In a statement today, it said that the anticipated net profit would be a slight improvement over 2023, which is expected to show a US$23.3 billion net profit (2.6 per cent net profit margin).
IATA also said the industry’s operating profit is expected to reach US$49.3 billion in 2024 from US$40.7 billion in 2023, while total revenue in 2024 is expected to grow 7.6 per cent year-over-year to a record US$964 billion.
However, expense growth is expected to be slightly lower at 6.9 per cent for a total of US$914 billion.
“Some 4.7 billion people are expected to travel in 2024, a historic high that exceeds the pre-pandemic level of 4.5 billion recorded in 2019,” IATA said.
The high travel demand coupled with limited capacity due to persistent supply chain issues continues to create supply and demand conditions supporting yield growth.
Passenger yields in 2024 are expected to improve by 1.8 per cent compared to 2023.
Reflecting the tight supply and demand conditions, efficiency levels are high with the load factor expected to be 82.6 per cent in 2024, slightly better than 2023 (82 per cent) and the same as in 2019.
For cargo volumes, it is expected to be 58 and 61 million tonnes in 2023 and 2024, respectively.
Cargo revenue is expected to fall to US$111 billion in 2024, down sharply from a peak of US$210 billion in 2021, but it is above 2019 revenue which was US$101 billion.
Meanwhile, IATA director general Willie Walsh said that considering major losses of recent years, the U$25.7 billion net profit expected in 2024 is a tribute to the aviation industry’s resilience.
“People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity. The recovery speed has been extraordinary, yet it also appears that the pandemic has cost aviation about four years of growth.
“From 2024, the outlook indicates that we can expect more normal growth patterns for both passenger and cargo,” he said.
— Bernama
