Middle East carriers expect $268mn profit in 2023

Middle East carriers expect $268mn profit in 2023

Muscat: Middle East carriers are predicted to report a profit of $268 million in 2023 from an expected loss of $1.1 billion in 2022, according to a new report.

“In 2023, passenger demand growth of 23.4 per cent is expected to outpace capacity growth of 21.2 per cent. Over the year, the region is expected to serve 97.8 per cent of pre-crisis demand levels with 94.5 per cent of pre-crisis capacity,” the International Air Transport Association (IATA) said in its new report.

The region has benefitted from a certain degree of re-routing resulting from the war in Ukraine, and more significantly so from the pent-up travel demand using the region’s extensive global networks as international travel markets re-opened, the report further added.

The IATA expects a return to profitability for the global airline industry in 2023 as airlines continue to cut losses stemming from the effects of the COVID-19 pandemic on their business in 2022.

In 2023, airlines are expected to post a small net profit of $4.7 billion—a 0.6 per cent net profit margin. It is the first profit since 2019 when industry net profits were $26.4 billion (3.1 per cent net profit margin).

In 2022, airline net losses are expected to be $6.9