According to the International Air Transport Association (IATA), Middle Eastern carriers are predicted to report a combined net profit of USD 3.1 billion in 2024, up 4.8% from 2023 estimates.
“The Middle East is expected to deliver a strong financial performance in both 2023 and 2024. The Middle East carriers have been swift to rebuild their international networks and restore their super-connector hubs. To that end, capacity is expected to grow faster than demand in 2024, however, with more efficient fleets, the net profit margin has a potential to slightly increase,” the IATA said, Zawya reported.
According to the global aviation body, Revenue Passenger Kilometres (RPK) are predicted to increase by 6.3% in 2023 compared to 2021, while Available Seat Kilometres are expected to increase by 10.7%.
According to the IATA, 4.7 billion people are anticipated to travel worldwide in 2024—a record high that surpasses the 4.5 billion pre-pandemic number that was noted in 2019. It is anticipated that the airline industry will generate USD 25.7 billion in net profits by 2024, with a net profit margin of 2.7%. That represents a minor improvement over 2023, when a USD 23.3 billion net profit (or 2.6% net profit margin) is anticipated.
Operating profits for the airline sector are predicted to increase from USD 40.7 billion in 2023 to USD 49.3 billion in 2024. Revenues overall are predicted to reach a record USD 964 billion in 2024, up 7.6% year-over-year. It is anticipated that expenses will grow by a marginally lower 6.9% to USD 914 billion.
“Considering the major losses of recent years, the USD 25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience. People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity. The speed of the recovery has been extraordinary, yet it also appears that the pandemic has cost aviation about four years of growth. From 2024 the outlook indicates that we can expect more normal growth patterns for both passenger and cargo,” Willie Walsh, IATA’s Director General said.