The global airline industry will increase its profits from $23.3 billion in 2023 to $25.7 billion in 2024, predicts the International Air Transport Association (IATA).

What is IATA? A trade association made up of airlines and air cargo carriers that was founded in 1945 and has 290 airlines from 117 countries, representing 80% of global air traffic.

IATA estimates that in 2023 industry-wide earnings will be $23.3 billion, up from its forecast of $4.6 billion a year ago, driven mainly by North America, Europe and the Middle East.

From Boeing’s perspective, airline financial performance, which influences demand for new capacity, has benefited from resilient travel demand.

Global airline industry

The overall outlook stabilizes as companies face uncertainties in the environment in the short to medium term, as airlines face persistently high and volatile fuel costs and tight labor conditions.

Globally, inflation and interest rates are expected to decline, and regional economic and geopolitical difficulties add uncertainty to the outlook and financial viability of some airlines and regions.

Boeing believes that the long-term outlook for the industry remains positive due to the fundamental drivers of air travel demand: economic growth, increasing propensity to travel due to increased trade, globalization and improved air services driven by the liberalization of air traffic rights between countries.

Aircraft

Boeing forecasts a 3.5% growth rate in the global fleet over a 20-year period.

Based on long-term global economic growth projections of 2.6% average annual gross domestic product, the company predicts demand for approximately 42,595 new aircraft over the next 20 years.

To note: the industry remains vulnerable to exogenous events, including fuel price increases, credit market crises, acts of terrorism, natural disasters, conflicts, epidemics, pandemics and increased global environmental regulations.

According to Grupo Aeroportuario del Sureste, the global airline industry has recently experienced and may continue to experience significant financial difficulties in the future, marked by the bankruptcy filings of several airlines and recent warnings about the industry’s profitability.