The return to profitability is ‘feasible’ for 2023 for the airlines, which are expected to have from this year 83% of the passengers they had before the Covid-19 pandemic, as announced today by the airlines.
The aviation industry expects losses of $ 9.7 billion this year but it will be a “huge improvement” after the 137.7 billion lost in 2020 and 42.1 billion in 2021, according to the International Union. Aviation (Iata), whose members include airlines from around the world and which holds its annual general meeting in Doha.
“Profitability at the industry level in 2023 seems feasible as (companies) in North America are expected to record profits of 8.8 billion in 2022,” Iata said in a statement.
In addition, “strong accumulated demand, the lifting of travel restrictions in most markets, low unemployment in most countries and private savings are fueling a recovery that will bring the number of passengers to 83% of the pandemic level” this year, according to IATA.
The health crisis, the effects of which have been felt since March 2020, torpedoed the aviation industry, which lost 60% of its customers that year. In 2021, passenger traffic reached 50% of the 4.5 billion passengers transported in 2019.
IATA chief Willie Walsh said today that he remains confident the industry will return to profitability in 2023 although there may continue to be a disconnect between capacity and demand until the first quarter. Speaking at a panel in Doha, he added that he was “not worried” about the current supply and demand environment.
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