ISTANBUL (Reuters) – Global airlines more than doubled their profit forecast for 2023 from $4.7 billion to $9.8 billion (4.40 billion to 9.17 billion euros), buoyed by strong demand for travel after the COVID-19 pandemic.
“The pandemic years are behind us and the borders are open normally,” said Willie Walsh, director general of the International Air Transport Association (IATA), which is holding its general meeting, on Monday.
In recent months, global airlines have reported strong financial results and said they anticipate a very buoyant summer season, with travel demand showing no signs of abating despite inflation.
Fuel cost pressure has also eased this year with the decline in crude oil prices.
Global airline revenue is expected to approach pre-pandemic levels at $803 billion from $838 billion in 2019.
“A lot of people don’t just have to travel, they want to travel. And they will continue to do so throughout this year,” Willie Walsh told Reuters in an interview.
However, the airline sector faces persistent challenges, such as supply chain issues and rising airport charges.
“Equipment suppliers have been far too slow to address supply chain bottlenecks that are driving up costs and limiting our ability to deploy aircraft,” Willie Walsh explained.
“The airlines are beyond frustrated. A solution must be found.”
On Sunday, Airbus chief commercial officer Christian Scherer told Reuters he saw greater visibility on his forecast for industrial activities as well as the start of a more positive trend in deliveries.
(Report Joanna Plucinska and Aditi Shah, Augustin Turpin, edited by Blandine Hénault)
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