Airlines hope for 2023
2022.12.06 05:08
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Airlines hope for 2023
Budrigannews.com – An industry association stated on Tuesday that the snapback in air travel following nearly two years of COVID-19 restrictions will continue next year, making the airline industry profitable for the first time since 2019.
The pandemic cost airlines tens of billions of dollars in 2020 and 2021, but air travel has partially recovered, and some airports have had trouble keeping up.
The Global Air Transport Affiliation (IATA) presently expects a net benefit of $4.7 billion for the business one year from now, with multiple billion travelers set to fly. In the past, it had only stated that profits would be “within reach” in 2023.
IATA decreased its industry-wide loss projection for 2022 from $9.7 billion to $6.9 billion.
When asked about the anticipated return to profit in 2023, IATA Director General Willie Walsh said, “That is a great achievement considering the scale of the financial and economic damage caused by government imposed pandemic restrictions.”
However, the former IAG and British Airways (LON:) boss said that regulations, high costs, and inconsistent government policies are among the reasons why many airlines will continue to struggle next year.
He added, “Airlines must remain vigilant to any increases in taxes or infrastructure fees,” which included those made “in the name of sustainability.” These were among the types of increases.
According to IATA, the company’s prediction is based on China gradually opening up to international traffic and easing domestic zero-COVID restrictions. Airlines’ profitability would suffer if that does not occur. It stated that a recession in some economies is an additional risk for the outlook in 2023.
