As passenger traffic is increasing and local economies are reviving, the airline industry is anticipated to post a net profit of USD 9.8 billion this year, IATA stated on June 5.
Despite the current state of the economy, people are still taking to the skies to communicate, travel, and conduct business, according to Willie Walsh, Director General of the International Air Transport Association (IATA). According to the most recent figures, passenger traffic has surpassed 2019 levels by more than 90%.
Speaking at the IATA Annual General Meeting, he said that local economies are rebounding, hotels are becoming fuller, airports are becoming busier, and the airline sector has entered profitability.
This year, the airline sector is predicted to bring in USD 803 billion in revenue and USD 9.8 billion in net profit. According to him, airlines will make an average of USD 2.25 per passenger.
Despite the pandemic’s aftermath, the aviation sector is still facing difficulties like cost pressure and supply-chain problems.
Original Equipment Manufacturers (OEMs), according to Walsh, have been much too sluggish to address supply-chain bottlenecks that are driving up costs and restricting our capacity to deploy aircraft.
“Airlines are really irritated. There must be a solution, he continued.