IATA Predicts $30.5 Billion Profit for Airlines Amid Record Revenue in 2024

The International Air Transport Association (IATA) has boosted the profit forecast for the airline industry in 2024, projecting a record revenue of $996 billion. This outlook of a 9.7% increase from the previous year was disclosed during the IATA Annual General Meeting held in Dubai.

According to the updated forecast, the airline industry's net profits are expected to reach $30.5 billion in 2024, up from the December 2023 estimate of $25.7 billion. "With a record five billion air travelers expected in 2024, the human need to fly has never been stronger. Moreover, the global economy counts on air cargo to deliver the $8.3 trillion of trade that gets to customers by air," said Willie Walsh, IATA's director general.

However, rising expenses affect positive revenue and profit margins. The IATA report reveals that total expenses for global airlines are set to rise to $936 billion in 2024, a 9.4% increase, which will inevitably impact profit margins. The projected return on invested capital is 5.7%, significantly below the average capital cost of 9%.

"The airline industry is on the path to sustainable profits, but there is a big gap still to cover," Walsh stated. He highlighted that 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."

Walsh also emphasized the need to address long-standing supply chain issues and advocated for more business-friendly policies to "accelerate investments in sustainability." With airlines contributing around 3% of global carbon emissions, IATA has committed to achieving net-zero emissions by 2050 despite skepticism from environmental experts.

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