Losses of airlines will decrease compared to 2022
The 2020 pandemic caused a crisis in air travel that hit the passenger sector the hardest. The almost complete cancellation of civilian flights was a blow to operators, but after a while, they managed to compensate for their losses with cargo shipments. Gradually, with the lifting of quarantine restrictions, the industry began to recover, but problems still remain. Analysts noted that in 2022, airline losses have decreased compared to previous periods.
According to IATA, the figure was $138 billion in 2020 and already $42 billion in 2021. In 2022, losses are down to $6.9 billion, which is a good result. According to forecasts for 2023, the airline industry will be able to overcome the level of loss and even make a profit of about 4.7 billion dollars. Total revenue would be about $779 billion. In this case, the market will show growth for the first time since 2019. For comparison, in 2019, the net profit of airlines was more than $26 billion.
As for air cargo transportation, after the excitement in 2020, interest in it has fallen. In 2022, the volume of this sector decreased by 8%, and according to experts, by the end of 2023, the market will shrink by another 4%. Revenues of airlines in 2023 will be about $149 billion, almost 25% lower than in 2022. Operators’ profits rose by 7.2% then, but are expected to fall by 23% in 2023.
In 2022, total revenue in the passenger airline sector was $438 billion, and in 2023 we can expect it to be more than $520 billion. Compared to previous periods, the volume of passenger flights has increased significantly. In 2021, for example, it was $239 billion, compared with $189 billion in a pandemic year. Overall, passenger traffic is projected to reach 4.2 billion in 2023.
Despite the rather optimistic expectations, IATA notes that profits will not be seen in all regions. While in 2022 only North America was able to break even, in 2023 airlines from Europe and the Middle East will start to make a profit along with it. At the same time, operators from Africa, Asia Pacific, and Latin America will still be considered unprofitable.
The results of 2022 and forecasts for 2023 suggest that the sector continues to recover from the crisis. According to IATA analysts, the market has passed its lowest point and is now steadily going up.
