After 2 years of being heavily affected by Covid-19 pandemic, the global aviation industry is forecasted to have a strong recovery.
The global aviation industry will be profitable again in 2023. Photo: Airline Ratings.
The International Air Transport Association (IATA) says airlines around the world have lost tens of billions of dollars in 2020 and 2021 due to the pandemic, but air travel has partially recovered.
IATA expects the global airline industry’s net profit to reach 4.7 billion USD next year, with more than 4 billion passengers expected to fly. Previously, this organization only forecasted to be profitable in 2023.
For 2022, IATA has reduced its industry-wide loss forecast to 6.9 billion USD from 9.7 billion USD.
Willie Walsh, general manager of IATA, said: “The airline industry’s profitability next year will be a huge achievement because in the past two years the industry has suffered a lot”.
However, the former head of British Airways and IAG also warned that many airlines are likely to continue to struggle next year. This is due to new immigration regulations, high costs and inconsistent government policies.
The former British Airways and IAG executive said: “Airlines must be wary of increasing taxes or infrastructure fees, including those “in the name of sustainability” from governments and other organisations”.
IATA said its profit forecast is based on China’s gradual reopening to the world as it eases domestic restrictions on COVID-19. If that doesn’t happen, the profits of airlines will suffer.
“Another risk to the 2023 outlook is that some economies will slip into recession,” IATA said.
@ Zing News
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Source: Vietnam Insider