Airlines see stable profits, record number of travellers in 2024

FE Team | Published: December 07, 2023 00:31:22

GENEVA, Dec 6 (Reuters): Airline profits are set to stabilise in 2024 as continued growth in post-pandemic travel is offset by the high cost of capital and capacity constraints, industry group IATA said on Wednesday.
The global airline sector has largely recovered from the COVID-19 pandemic, which saw planes grounded and travellers reluctant to fly, as demand has boomed across North America, the Middle East and Europe.
The airline sector returned to profitability in 2023, with net profit expected at $23.3 billion on a 2.6 per cent margin, and is set to reach $25.7 billion and a margin of 2.7 per cent next year, the International Air Transport Association (IATA) said.
But while revenues are tipped to reach a record $964 billion, the high cost of capital driven by rising interest rates is troubling, the global body said.