Airlines will be profitable again in 2023, for the first time in 3 years

The Airlines industries It will turn a global profit again in 2023, after nearly three years of losses due to the impact of the COVID-19 pandemic.. According to the International Air Transport Association (IATA)International Air Transport Association), in 2022, Airlines They would reduce their net loss to $6.9 billion (6564.5 million euros), A figure that allows us to expect a “small” joint net profit of $4,700 million (4472 million euros) in 2023 and a traffic of 4,000 million passengers.

In 2023, airlines are expected to post their first profits on revenues of $779 billion (741.221 million euros) since 2019, when the industry net profit was $26.4 billion (25.115 million euros).

The International Air Transport Association (IATA) highlights that airlines continue to reduce losses from the effects of the crisis on their business in 2022. Indeed, The airline’s employers improved their loss forecast from last June, when they calculated a deficit of -9.700 million dollars (-9.228 million euros) for the industry as a whole.. In any case, it would be much better results than the losses of 137,700 million (131,003 million euros) and 42,000 million dollars (39,958 million euros) in 2020 and 2021, respectively.

Willie Walsh, Director General of the International Air Transport Association (IATA), called the offer a “great achievement” but that the industry “still needs to do to strengthen its financial position,” he emphasized.

Consumer demand for air travel has been boosted by the reopening of borders closed by the pandemic, as well as a strong dollar that has encouraged more Americans to travel abroad. Corporate travel is back, too.

At the same time, air supply constraints remain, including delayed aircraft deliveries, pilot shortages, and airport infrastructure problems. However, the industry is increasingly optimistic, even as the global economic downturn looms.

European operators

The International Air Transport Association (IATA) outlines forecasts for European airlines that are suffering Total losses amounted to $3,100 million (€2,949.5m) in 2022 and profits of $621m (€590.7m) in 2023..

In 2023, passenger demand growth of 8.9% is expected to outpace capacity growth of 6.1%. During the year, the region is expected to meet 88.7% of pre-crisis demand levels, with 89.1% of pre-crisis capacity.

The war in Ukraine has curtailed the activities of some operators in the region. Operational outages are resolved in some interlocutor continent, but labor disputes persist in several places.