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In its announcement, IATA forecasts that the average profit per passenger for airlines will increase to $7 by 2025. Until this year, profit per passenger is expected to reach $6.40.
CNN noted that these figures represent a remarkable recovery from the airline industry, which had recorded three consecutive years of losses from 2020 to 2022, totaling nearly $187 billion due to the COVID-19 pandemic. “The continued surge in travel demand following the lifting of COVID-19 travel restrictions quickly helped the airline industry restore profitability and allowed some airlines to charge higher fares,” CNN wrote.
According to the latest forecast from the International Air Transport Association (IATA), global revenue for the industry could surpass $1 trillion next year, an unprecedented record.
The latest IATA report paints a colorful picture of the future of the global aviation industry. While Middle Eastern airlines are projected to dominate the market with impressive profits of $24 per passenger, putting them in the lead, European and American airlines are also not far behind with profits of $9 per passenger and $12 per passenger, respectively.
However, the picture is quite different in Africa, Latin America, and the Asia-Pacific region, where airlines are expected to have lower-than-average profits. This stark divergence highlights the diverse opportunities and challenges facing these regions.
This is a sign that the aviation industry is recovering strongly and is ready for a promising future.
“The ongoing supply chain issues are having a huge impact on IATA’s cost base,” said Walsh, IATA’s Director General, adding that the prolonged aircraft shortage means older, less fuel-efficient aircraft have to fly for longer periods, increasing operating and maintenance costs as well as negatively impacting the environment.
Furthermore, upcoming changes by the US government could hinder the aviation industry's efforts to achieve net-zero carbon emissions by 2050. According to Our World in Data, aviation accounts for 2.5% of global carbon emissions. Meanwhile, scientists say that global greenhouse gas emissions must be reduced to net-zero by 2050 on a net basis – taking into account all pollution generated and removed from the atmosphere – to keep global warming below 1.5 degrees Celsius.
