International air transport is returning to its pre-COVID-19 health. This is what emerges from the figures revealed on June 3 by the International Air Transport Association (IATA), which even forecasts records in 2024 in terms of profits and the number of passengers transported.
In 2024, the planet will experience record air traffic, according to the International Air Transport Association which makes attractive projections for airlines. Meeting in a general assembly in Dubai, United Arab Emirates, on June 3, IATA anticipates activity well exceeding the 2019 record.
The return of good health to international air transport is, in fact, confirmed by the figures emanating from this association. Some 4.96 billion passengers will be transported in 2024, which will generate a forecast profit estimated, for the same year, at $30.5 billion. These recent projections thus exceed the previous ones, counting on only 4.7 billion air travelers in 2024 for a profit of 25.7 billion.
Record profits in air transport
Moreover, it should be remembered that IATA estimates the profits earned in 2023 by airlines at 27.4 billion dollars, compared to 23.3 billion previously projected. In terms of turnover, the association indicated that in 2024, the latter is estimated at 996 billion dollars, whereas in its projections, previously, it only mentioned 964 billion for the same year 2024. A figure already well above the 838 billion in 2019.
Speaking before representatives of his association which oversees 320 airlines, representing 83% of international traffic, the Director General of IATA, Willie Walsh, considered that these forecast results for the year 2024 are “ a huge success given the recent serious losses due to the pandemic.” The health crisis had, in fact, caused great losses to international companies around the world. Traffic had, as a reminder, been reduced by two thirds, generating losses estimated at $183 billion between 2020 and 2022.
Furthermore, for Vik Krishnan, specialist in the air sector at McKinsey, who commented on these figures on AFP, “ the post-Covid recovery has been remarkable,” but certain disparities still exist depending on the region. “ Domestic lines in the United States are doing very well, as in China », while other markets remain behind, like domestic networks in France and Germany, he notes. Mr. Willie Walsh estimates, for his part, that profitability remains relatively meager for his sector which only benefits from a 3% net margin in 2024. “ At only $6.14 per passenger, our profits are very low, barely enough for a coffee shop in many parts of the world,” he notes.
Finally, in terms of air freight, the turnover of 2021, peaking at 210 billion dollars, will decline in 2024 to settle at 120 billion after 123 billion in 2023. This will still be better than the 101 billion in 2019. IATA also points to the increase in airline costs which will reach 936 billion dollars in 2024, in particular because of the fuel bill estimated at 291 billion, or 31% of operational costs, based on a barrel of kerosene at $113.8.
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