Aviation sector to more than double profits in 2023: IATA

By Gokhan Ergocun

ISTANBUL (AA) - The International Air Transport Association (IATA) on Monday announced its forecast that the aviation sector's net profits will reach $9.8 billion in 2023, more than twice last year's figure of $4.7 billion.

In 2023, some 4.35 billion people are expected to travel by air, which is close to 2019 figures, the IATA said during its annual meeting in Istanbul.

This year, the air cargo volume is also expected to reach 57.8 million tons, while in 2019, the amount of air cargo was 61.5 million tons.

The overall income of the sector is forecasted to reach $803 billion, an annual rise of 9.7%, exceeding the $800-billion level for the first time since 2019.

The sector's expenditures will reach $781 billion this year, the association also predicted.

Willie Walsh, the director general of the association, said the aviation sector's costs eased partially, thanks to fuel prices, although still high but moderate.

The sector's return to net profitability is seen as a great success, even with a 1.2% net profit margin, he noted.

He added that operating with profitability in a period of economic uncertainty seems to be an important success, as the net profit increase came after the biggest loss of $183.3 billion in aviation history in the period 2020-2022.

The IATA also said the current inflation, the ongoing Russia-Ukraine war, supply chain issues, and regulator costs are risks for the sector in the upcoming period.