The global airline industry is expected to generate over $1 trillion in revenue next year, with passenger numbers reaching an all-time high of 5 billion, according to the International Air Transport Association (IATA). The industry’s average profit per passenger is expected to increase to around $7 next year, up from $2.25 18 months ago.
Middle East airlines are expected to lead the pack in terms of profit per passenger, with an average of $24, followed by US airlines at $12 and European airlines at $9. However, airlines in Africa, Latin America, and the Asia-Pacific region are expected to be less profitable than the industry average.
IATA director general Willie Walsh described the revenue figure as “great news,” but noted that net profitability across the industry would still be “wafer-thin” at $36.6 billion. He also highlighted the impact of supply chain issues, including delays in aircraft deliveries, and global conflicts, which are driving costs higher.
The industry is also facing challenges in its efforts to reach net-zero carbon emissions by 2050, with the looming change of government in the United States potentially threatening the progress made under the Biden administration. Aviation accounts for 2.5% of worldwide carbon emissions, and scientists say that emissions must be reduced to zero by 2050 to keep global warming to no more than 1.5 degrees Celsius.
In other news, Alaska Air Group, which owns Alaska Airlines and Hawaiian Airlines, announced that it will start its first-ever flights from its base in Seattle to Tokyo and Seoul next year, targeting $1 billion in additional profit from the combined entity in 2027.
