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Global Airlines' Profit Outlook Improves as Travel Demand Rises

Global Airlines' Profit Outlook Improves as Travel Demand Rises
The International Air Transport Association (IATA) said Monday that it expects airlines to generate nearly $1 trillion in revenue and just over $30 billion in profit for 2024 as travel demand remains high post-pandemic.

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International Air Transport Association (IATA) Raises Profit Forecasts for Airlines in 2024

The International Air Transport Association (IATA) has increased its profit forecasts for airlines in 2024, citing strong travel demand as the driving force behind the boost. The industry is projected to reach a profit of $30.5 billion this year, up from the estimated $27.4 billion earned in 2023. Revenue is also expected to grow by 9.7% to just under $1 trillion, with a record 4.96 billion passengers expected to fly in 2024.

However, the airline industry is still facing challenges, including high fuel prices and supply chain issues that have impacted deliveries from plane makers like Airbus and Boeing. Profit margins are forecasted to remain low at just 3.1% for the year, despite the increase from previous years.

The Asia-Pacific region is expected to see the most significant increase in profit, with domestic travel within China, Japan, and Australia driving the recovery post-COVID. As a result, airlines like Southwest, Delta, United, and American are seeing mixed reactions in the stock market.

IATA Director General Willie Walsh emphasized the importance of resolving supply chain issues and reducing regulatory burdens to improve profitability in the industry.