IATA Director General Willie Walsh said that the aviation sector has recovered from the Covid-19 pandemic. File
| Photo Credit: Reuters

The global airline industry is expected to record a profit of $1 trillion for the year 2024 as it marks its recovery from the Covid-19 pandemic, according to the International Association of Air Transport Association (IATA). “Aviation has recovered from the pandemic and is growing profitably,” Willie Walsh, Director General of IATA, said at its 80th Annual General Meeting being held in Dubai.

Though the industry will witness record revenues of almost $1 trillion in 2024, expenses will also be at a record high of $936 billion. The net profit will be $30.5 billion, which represents a net margin of just over 3%, Walsh said in his opening remarks. He underlined that airlines only retain $6.14 of profit per passenger.

However, a fiercely competitive environment among airlines and the oligopolistic upstream supply chain’s lack of competition will continue to squeeze the airline industry which is expected to earn a 5.7% return on invested capital which is well below the average 9% cost of capital.

[The reporter is in Dubai at the invitation of IATA]