The global airline industry is projected to report a lower loss at USD 6.9 billion in 2022, mainly due to stronger passenger yields and cost control by carriers amid rising fuel prices, according to industry body IATA.
In June, the International Air Transport Association (IATA) projected the industry loss at USD 9.7 billion. In October 2021, it forecasted a loss of USD 11.6 billion for this year.
On Tuesday, IATA said the global airline industry is expected to return to profitability in 2023 and post a small net profit of USD 4.7 billion.
After being significantly impacted by the coronavirus pandemic, the airline industry is on the recovery path.
In 2022, the airline’s net loss is expected to be USD 6.9 billion. It said that this is significantly better than a loss of USD 42 billion and USD 137.7 billion in 2021 and 2020, respectively.
“We are on the right path… but still a long way to go,” IATA Director General Willie Walsh said at a briefing here on Tuesday.
For 2022, IATA said the improved prospects stem largely from strengthened yields and strong cost control in the face of rising fuel prices.
“Passenger yields are expected to grow by 8.4 per cent (up from 5.6 per cent anticipated in June). Propelled by that strength, passenger revenues are expected to grow USD 438 billion (up from USD 239 billion in 2021),” it noted.
In the African region, carriers are expected to post a loss of $638 million in 2022, narrowing to a loss of $213 million in 2023. Passenger demand growth of 27.4% is expected to outpace capacity growth of 21.9%. Over the year, the region is expected to serve 86.3% of pre-crisis demand levels with 83.9% of pre-crisis capacity.
Africa is particularly exposed to macroeconomic headwinds, which have increased the vulnerability of several economies and rendered connectivity more complex.
IATA is a global grouping of around 290 airlines.
