MOSCOW (Pakistan Point News / Sputnik - 05th June, 2023) The International Air Transport Association (IATA) on Monday updated its 2023 forecast for the net profit of airlines to double to $9.8 billion and the net income to increase by 9.7%.
"Airline industry net profits are expected to reach $9.8 billion in 2023 (1.2% net profit margin) which is more than double the previous forecast of $4.7 billion (December 2022)," the IATA said in a statement.
The industry has been suffering losses for the past three years in a row, which totaled $3.6 billion in 2022, according to the statement.
The airline industry's total revenue in 2023 will reach $803 billion, which is a 9.7% increase year-on-year and the first increase above the $800 billion mark since 2019, IATA said.
IATA also upgraded its forecast for the industry's operating profits in 2023 from $3.2 billion to $22.4 billion, compared to $10.1 billion last year. Meanwhile, expenses will grow by 8.1% in annual terms to $781 billion.
Additionally, the association believes that a total of about 4.35 billion people will travel by air in 2023, which is close to the 2019 level of 4.54 billion, and the global cargo air traffic will reach 57.8 million tonnes, comparing with 61.5 million tonnes in 2019.
