By Staff Correspondent
It is anticipated by IATA that the aviation industry shall turn profitable again in the upcoming year as airlines continue to reduce losses brought on by COVID-19 in 2022.
IATA (International Air Transport Association) stands as a global grouping of around 290 airlines.
The global airline sector has been anticipated to have a comparatively smaller loss of USD 6.9 billion in the present year, primarily as a result of cost management and higher passenger yields and by carriers in the face of rising fuel prices, According to industry group IATA.
After being adversely affected by the coronavirus outbreak, the aviation sector is on the mend.
$6.9 billion USD is the estimated airline net loss for 2022. Compared to losses of USD 42 billion and USD 137.7 billion in 2021 and 2020, respectively, this is a considerable improvement.
On Tuesday, December 6, IATA reported that the global airline industry is anticipated to return to profitability in 2023 and generate a meagre net profit of USD 4.7 billion.
IATA highlighted that solid cost control and higher yields in the face of rising fuel prices are the primary drivers of the enhanced outlook for the upcoming year. Passenger yields are anticipated to accelerate by 8.4%. With that strength, passenger revenue growth is anticipated to increase by USD 438 billion (increase from USD 239 billion in the previous year).