The global airline industry is expected to generate a combined revenue of almost $1 trillion or $996 billion in 2024, up 9.7% YoY, which will be a record high. Operating profits for airlines globally are expected to reach $59.9 billion in 2024, up nearly $7 billion compared to 2023.
However, the projections for net profit and return on invested capital are not expected to increase significantly. In 2024, the net profit of the global airline industry is projected to reach $30.5 billion, with just a 3.1% improvement in net profit margin.
Return on invested capital in 2024 is expected to be 5.7%, which is 3.4% below the average cost of capital. Total expenses for airlines are expected to reach a record high of $936 billion in 2024, up 9.4% YoY. IATA also anticipates air cargo to deliver $8.3 trillion of trade in 2024.
Also read: Air India issues 7-point SOP on AC temperature to cabin crew after harrowing 30-hour flight delay
Willie Walsh, DG of IATA, said, "In a world of many and growing uncertainties, airlines continue to shore up their profitability. The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses. With a record five billion air travelers expected in 2024, the human need to fly has never been stronger."
He added that strengthening airline profitability and growing financial resilience is important. "Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050."
Walsh also highlighted how earnings per passenger are low and how it is important to improve the profitability of airlines globally.
He said, "A 5.7% return on invested capital is well below the cost of capital, which is over 9%. And earning just $6.14 per passenger is an indication of just how thin our profits are, barely enough for a coffee in many parts of the world. To improve profitability, resolving supply chain issues is of critical importance so we can deploy fleets efficiently to meet demand."
IATA projects that due to slowing deliveries, there will be an impact on the total number of flights. An inventory of 38.7 million flights is expected to be available in 2024, which is 1.4 million flights below December 2023 estimates.
The total number of aircraft deliveries scheduled for 2024 is expected to be 1,583, 11% lower than expectations. As per the global aviation body, airlines are resorting to measures like deploying larger aircraft as a mitigating strategy.
For a second year in a row, all regions are expected to generate profits, with the most significant increase expected from Asia-Pacific airlines. North America is expected to continue as the most significant contributor to industry profits.
Also read: Sustainable Aviation Fuels production to triple in 2024, India holds significant potential, says IATA
However, the projections for net profit and return on invested capital are not expected to increase significantly. In 2024, the net profit of the global airline industry is projected to reach $30.5 billion, with just a 3.1% improvement in net profit margin.
Return on invested capital in 2024 is expected to be 5.7%, which is 3.4% below the average cost of capital. Total expenses for airlines are expected to reach a record high of $936 billion in 2024, up 9.4% YoY. IATA also anticipates air cargo to deliver $8.3 trillion of trade in 2024.
Also read: Air India issues 7-point SOP on AC temperature to cabin crew after harrowing 30-hour flight delay
Willie Walsh, DG of IATA, said, "In a world of many and growing uncertainties, airlines continue to shore up their profitability. The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses. With a record five billion air travelers expected in 2024, the human need to fly has never been stronger."
He added that strengthening airline profitability and growing financial resilience is important. "Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050."
Walsh also highlighted how earnings per passenger are low and how it is important to improve the profitability of airlines globally.
He said, "A 5.7% return on invested capital is well below the cost of capital, which is over 9%. And earning just $6.14 per passenger is an indication of just how thin our profits are, barely enough for a coffee in many parts of the world. To improve profitability, resolving supply chain issues is of critical importance so we can deploy fleets efficiently to meet demand."
IATA projects that due to slowing deliveries, there will be an impact on the total number of flights. An inventory of 38.7 million flights is expected to be available in 2024, which is 1.4 million flights below December 2023 estimates.
The total number of aircraft deliveries scheduled for 2024 is expected to be 1,583, 11% lower than expectations. As per the global aviation body, airlines are resorting to measures like deploying larger aircraft as a mitigating strategy.
For a second year in a row, all regions are expected to generate profits, with the most significant increase expected from Asia-Pacific airlines. North America is expected to continue as the most significant contributor to industry profits.
Also read: Sustainable Aviation Fuels production to triple in 2024, India holds significant potential, says IATA
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