ASIM, jun 10
The International Air Transport Association (IATA) has updated its profitability projections for airlines in 2024, showing stronger performance compared to its forecasts from June and December 2023. Despite this improvement, the global airline industry still falls short of achieving returns above the cost of capital. Key highlights include anticipated net profits of $30.5 billion in 2024 (a 3.1% net profit margin), an increase from the estimated $27.4 billion in 2023 (3.0% net profit margin) and the $25.7 billion forecasted for 2024 in December 2023. The return on invested capital is expected to be 5.7%, approximately 3.4 percentage points below the average cost of capital. Operating profits are projected to rise to $59.9 billion, and total revenues are expected to hit a record high of $996 billion. Similarly, total expenses are also projected to reach a record $936 billion. The number of travelers is expected to reach a record 4.96 billion, and air cargo volumes are forecasted to be 62 million tonnes in 2024.
