International Air Transport Association says aviation industry's return to profit is 'within reach' in 2023

The International Air Transport Association said on Monday that despite ongoing uncertainty the aviation industry's return to profit is "within reach" in 2023.

Ahead of its annual general meeting in Doha, IATA said in an upgraded industry outlook air passengers are expected to hit 83 per cent of pre-pandemic levels this year.

The document quoted IATA director general Willie Walsh as saying, "Airlines are resilient. People are flying in ever greater numbers. And cargo is performing well against a backdrop of growing economic uncertainty."

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In a "huge improvement" from $42.1 billion in 2021, Industry losses are expected to drop to $9.7 billion this year.

With passenger numbers plunging 60 per cent in 2020 and the remaining 50 per cent down in 2021, the aviation industry was sent reeling by the pandemic.

While some airlines lost nearly $200 billion over two years while other firms in the sector went bankrupt.

In 2022, cargo volumes should reach a record 68.4 million tonnes "despite economic challenges", according to IATA's prediction.

"Strong pent-up demand, the lifting of travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fueling a resurgence in demand that will see passenger numbers reach 83 percent of pre-pandemic levels in 2022," IATA said.

North American airlines were expected to return an $8.8 billion profit this year with an expected delivery of more than 1,200 aircraft.

Ahead of a potential summer of chaos with shortages and strikes that could threaten their recovery, airlines are desperate to put the coronavirus pandemic behind them.

Representatives from the aviation sector meeting until Tuesday in Qatar have a packed agenda with multiple geopolitical crises including the war in Ukraine and the environment, while trade is roaring back to life.

Although industry figures are optimistic about the future despite the issues, cracks are already showing in the sector's recovery.

(With inputs from agencies)

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