The International Air Transport Association (IATA) has revised its profitability projections for the global airline industry, indicating a more robust outlook for 2023 with expectations of stability in 2024. Despite this positive shift, the forecast underscores that net profitability at the global level is anticipated to remain below the cost of capital in both years, reflecting ongoing challenges within the industry.
The strengthened profitability projections for 2023 align with the gradual recovery of the aviation sector as travel restrictions ease and passenger confidence returns. Airlines are expected to benefit from increased demand for air travel, potentially driven by pent-up travel desires and more streamlined travel protocols.