IATA expects record-high airline revenues of $964B in 2024

By Tuba Ongun

ANKARA (AA) – The International Air Transport Association (IATA) on Wednesday projected that the airline industry will generate record-high revenues of $964 billion in 2024, a rise of 7.4% year-on-year.

However, net profitability at the global level is expected to be well below the cost of capital in both 2023 and 2024, the IATA said in a statement.

The industry's net profits are expected to be $25.7 billion in 2024, up from an estimated $23.3 billion in 2023.

Air passenger traffic is projected to hit a historic high of 4.7 billion people next year, exceeding the pre-virus level of 4.5 billion.

As borrowing costs increase globally to combat persistent inflation rates, the return on invested capital will lag the cost of capital by 4 percentage points in both 2023 and 2024.

The IATA projected the airline industry's operating profits to come in at $49.3 billion next year and $40.7 billion this year.

The airline industry's expenses are foreseen to hike by 6.9% to $914 billion.

Cargo volumes, which saw a significant hike during the coronavirus pandemic period, are expected to be 58 and 61 million tons in 2023 and 2024, respectively.

"The speed of the recovery 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,” Director General IATA Willie Walsh said.