DUBAI: The global airline industry is projected to report higher net profits of US$30.5 billion and record revenues of nearly US$1 trillion as the sector recovers profitably from the impact of the coronavirus pandemic, IATA said on Monday. Is increasing.
The number of air passengers is expected to reach five billion this year.
However, the International Air Transport Association (IATA), which represents more than 330 airlines, said the return on invested capital is expected to be 5.7 percent in 2024, which is 3.4 percent below the average cost of capital.
Industry revenues are expected to reach a historic high of US$996 billion this year, while passenger revenues are projected to rise 15.2 percent to US$744 billion.
“Profitability is expected to be strong in 2024 as revenues grow slightly faster than expenses (+9.7 percent vs. +9.4 percent, respectively)…However, net profit is expected to grow slightly more slowly at +11.3 percent USD Estimates range from US$27.4 billion for 2023 to US$30.5 billion for 2024, IATA said in a release.This year, the industry's expenditure is expected to increase to $936 billion, which will be 9.4 percent more than 2023.
According to the outlook released at IATA's Annual General Meeting here, fuel is expected to average US$113.8 per barrel in 2024, resulting in a total fuel bill of US$291 billion, accounting for 31 per cent of all operating costs.
IATA Director General Willie Walsh said the expected total net profit of US$30.5 billion in 2024 is a major achievement given the deep damage caused by the recent pandemic.
He said a record five billion air passengers are expected in 2024.
"The return on invested capital of 5.7 percent is well below the cost of capital, which is more than 9 percent. And earning only US$6.14 per passenger is an indication of how low our profits are, which in many parts is a Barely enough for coffee.of the world," Walsh said.
The group has identified wars and supply chain issues as risks.
The number of air passengers is expected to reach five billion this year.
However, the International Air Transport Association (IATA), which represents more than 330 airlines, said the return on invested capital is expected to be 5.7 percent in 2024, which is 3.4 percent below the average cost of capital.
Industry revenues are expected to reach a historic high of US$996 billion this year, while passenger revenues are projected to rise 15.2 percent to US$744 billion.
“Profitability is expected to be strong in 2024 as revenues grow slightly faster than expenses (+9.7 percent vs. +9.4 percent, respectively)…However, net profit is expected to grow slightly more slowly at +11.3 percent USD Estimates range from US$27.4 billion for 2023 to US$30.5 billion for 2024, IATA said in a release.This year, the industry's expenditure is expected to increase to $936 billion, which will be 9.4 percent more than 2023.
According to the outlook released at IATA's Annual General Meeting here, fuel is expected to average US$113.8 per barrel in 2024, resulting in a total fuel bill of US$291 billion, accounting for 31 per cent of all operating costs.
IATA Director General Willie Walsh said the expected total net profit of US$30.5 billion in 2024 is a major achievement given the deep damage caused by the recent pandemic.
He said a record five billion air passengers are expected in 2024.
"The return on invested capital of 5.7 percent is well below the cost of capital, which is more than 9 percent. And earning only US$6.14 per passenger is an indication of how low our profits are, which in many parts is a Barely enough for coffee.of the world," Walsh said.
The group has identified wars and supply chain issues as risks.
