In 2022, the airline’s net loss is expected to be $6.9 billion. (File)
Geneva:
According to industry body IATA (International Air Transport Association), the global airline industry is forecast to report losses of less than $6.9 billion in 2022, mainly due to cost controls by carriers amid strong passenger yields and rising fuel prices. .
In June, IATA estimated the loss to the industry at $9.7 billion. In October 2021, it has projected a loss of $11.6 billion for the year.
On Tuesday, IATA said the global airline industry is expected to return to profitability in 2023 and post a smaller net profit of $4.7 billion.
After being hit hard by the coronavirus pandemic, the airline industry is on the recovery path.
In 2022, the airline’s net loss is expected to be $6.9 billion. This is much better than the losses of $42 billion and $137.7 billion in 2021 and 2020, respectively.
“We are on the right track… but there is still a long way to go,” IATA Director General Willie Walsh told a briefing here today.
For 2022, IATA said the improved prospects stem largely from higher yields and stronger cost controls in the face of rising fuel prices.
“Passenger yields are expected to grow by 8.4 per cent (up from 5.6 per cent estimated in June). Driven by that strength, passenger revenues are expected to grow to USD 438 billion (up from USD 239 billion in 2021),” it noted .
In the Asia Pacific region, airlines are projected to lose $10 billion this year and losses are expected to narrow to $6.6 billion in 2023.
IATA said the Asia Pacific region is severely lagging behind the impact of China’s zero COVID policies on travel.
“In 2023, passenger demand of 59.8 per cent is expected to exceed capacity growth of 47.8 per cent. During the year, the sector is expected to serve 70.8 per cent of pre-crisis demand with 75.5 per cent of pre-crisis capacity There is hope,” the industry group said.
IATA is a global group of about 290 airlines.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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