The International Air Transport Association (IATA) has revised its revenue outlook for 2024 upwards.
It is forecasting a net profit of $30.5 billion and a net profit margin of 3.1%. In its forecast announced in December 2023, it had set the net profit at $25.7 billion and the net profit margin at 2.7%. The net profit for 2023 was $27.4 billion with a net profit margin of 3%. Profits are anticipated across all regions.
Additionally, total revenue is expected to reach $996 billion, total expenses to stand at $936 billion, and the number of travelers to hit a record 4.96 billion. Cargo volume is projected at 62 million tonnes with cargo revenue expected to be $120 million. Although cargo revenue will significantly decrease from 2021, it will surpass the levels of 2019.
However, profits exceeding the capital cost of over 9% have not been achieved, highlighting a marginal revenue of $6.14 per passenger. Willie Walsh, IATA’s Director General, emphasized that higher profitability would enable investments in products meeting customer needs and sustainability solutions necessary for achieving net zero carbon emissions by 2050.
The surge in crude oil prices is becoming severe, with fuel expenses anticipated at $113.8 per barrel, accounting for 31% of all operational costs. Production of Sustainable Aviation Fuel (SAF) is expected to increase to 0.53% of total demand, and its cost, at $3.75 billion, will be $2.4 billion more than conventional jet fuel.
The number of flights is poised at 38.7 million, with a healthy seat occupancy rate of 82.5%, attributed to the supply-demand tightness caused by ongoing issues in the aircraft and engine supply chain. This is 1.4 million flights less than previously predicted.
Global economic trend, wars, and supply chain effects are considered risks, especially given the significant potential for worldwide affairs to change this year, an election-heavy year, with many factors having the potential to either positively or negatively impact.
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This article was generated using automatic translation by GPT-4 API. The translation may not be accurate.
