pandemic The global aviation industry, which is growing rapidly after recovering from the pandemic, is expected to report a net profit of $30.5 billion and record revenue of about $1 trillion. IATA expressed this possibility on Monday. The International Air Transport Association (IATA) expects the number of air passengers to reach five billion this year and said that the profit on invested capital is expected to be 5.7 percent, which is 3.4 percent less than the average cost of capital in 2024. According to IATA, which represents more than 330 airline companies around the world, the aviation industry’s revenue is expected to reach a record high of $996 billion this year. While passenger revenue is expected to grow by 15.2 percent to $744 billion.
Profitability will increase this year
“Profitability is expected to strengthen in 2024, as revenues grew slightly faster than expenses,” IATA said in a statement. However, net profit is expected to be $30.5 billion, up 11.3 per cent from $27.4 billion estimated for 2023. “This year, industry spending is expected to rise to $936 billion, up 9.4 per cent from 2023. According to the Aviation Outlook Report released at IATA’s Annual General Meeting, the average price of aviation fuel ATF is expected to be $113.8 per barrel in 2024, making the total fuel bill $291 billion, accounting for 31 per cent of all operating costs. IATA Director General Willie Walsh said the expected total net profit of $30.5 billion in 2024 is a major achievement considering the heavy losses caused by the recent pandemic. He said a record five billion air passengers are expected to arrive this year.
Flight costs drop by 34%
IATA Director General Willie Walsh on Monday said the real cost of air travel has fallen by 34 per cent in the last decade. The profit per passenger to airlines is about US$6.14. The International Air Transport Association (IATA) is a global group of more than 330 airlines. Addressing the 80th Annual General Meeting (AGM) of IATA here, Walsh said flying is still good value for money. “We recently conducted a survey of 6,500 passengers in 15 markets, of which 77 per cent said the same. This is not surprising, because the real cost of air travel has fallen by 34 per cent in the last decade,” he said.
Achieving net zero carbon emissions by 2050 is possible
Walsh said the profit per passenger for the airline was about $6.14. The annual general meeting is being held at a major 5-star hotel in Dubai. Globally, airline companies are expected to register a revenue of about US$1,000 billion by 2024. Emphasizing the need to increase the production of sustainable aviation fuel (SAF), Walsh said it is possible to achieve net zero carbon emissions by 2050.
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