Resilient airline industry to cut losses to $9.7 billion

Resilient airline industry to cut losses to $9.7 billion

The International Air Transport Association (IATA) at a meeting in Doha announced on Monday an upgrade to its outlook for the airline industry's 2022 financial performance as the pace of recovery from the COVID-19 crisis quickens. "Industry-wide profitability in 2023 appears within reach with North America already expected to deliver $8. 8 billion profit in 2022," said Willie Walsh, IATA's Director-General. Efficiency gains and improving yields are helping airlines to reduce losses even with rising labour and fuel costs (the latter driven by a 40 per cent increase in the world oil price and a widening crack spread this year), he added. Strong pent-up demand, the lifting of travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fuelling a resurgence in demand that will see passenger numbers reach 83 per cent of pre-pandemic levels in 2022, he said. "Airlines are resilient. People are flying in ever greater numbers. And cargo is performing well against a backdrop of growing economic uncertainty. Losses will be cut to $9. 7 billion this year and profitability is on the horizon for 2023," Walsh said."It is a time for optimism, even if there are still challenges on costs, particularly