Airline industry to report USD 9.8 bln net profit this year: IATA

Istanbul: The airline industry is expected to record a net profit of USD 9.8 billion this year as passenger traffic is rising and local economies are reviving, IATA said on Monday.

Willie Walsh, Director General of the International Air Transport Association (IATA), said that despite economic uncertainties, people are flying to reconnect, explore and do business. "Latest data shows that passenger traffic is at over 90 per cent of 2019 level".

Speaking at the IATA Annual General Meeting here, he said airports are busier, hotel occupancy is rising, local economies are reviving and the airline industry has moved into profitability.

The airline industry is expected to rake in revenues of USD 803 billion and a net profit of USD 9.8 billion this year. Airlines will make an average of USD 2.25 per passenger, he said.

While the aviation industry is recovering after the pandemic, there are still challenges like cost pressure and supply-chain issues.

Walsh said Original Equipment Manufacturers (OEMs) have been far too slow in dealing with supply-chain blockages that are both raising costs and limiting our ability to deploy aircraft.

"Airlines are beyond frustrated. A solution must be found," he added.