GENEVA — IATA has updated its outlook for the ******* industry’s 2022 financial performance, as the pace of recovery from the ******** ****** speeds up exponentially.
Industry ****** are expected to reduce to -US$9.7 billion (improved from the October 2021 forecast for an $11.6 billion loss) for a net loss margin of -1.2%. That is a marked improvement from ****** of $137.7 billion (-36.0% net margin) in 2020 and $42.1 billion (-8.3% net margin) in 2021, as IATA notes.
Industry-wide profitability in 2023 appears within reach, with North America already expected to deliver an $8.8 billion profit in 2022.
IATA says efficiency gains and improving yields are helping airlines to reduce ****** even with rising labour and fuel costs.
Meanwhile industry optimism and commitment to emissions reductions are evident in the expected net delivery of over 1,200 aircraft in 2022.
Strong pent-up demand, the lifting of travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fuelling a resurgence in demand that will see passenger numbers reach 83% of pre-******** levels in 2022, according to IATA’s estimations.
“Airlines are resilient. People are flying in ever greater numbers. And cargo is performing well against a backdrop of growing economic uncertainty. ****** will be cut to $9.7 billion this year and profitability is on the horizon for 2023. It is a time for optimism, even if there are still challenges on costs, particularly fuel, and some lingering restrictions in a few key markets,” said Willie Walsh, IATA’s Director General.
