Global airlines to trim losses in ’22 as outlook improves

Global airlines to trim losses in ’22 as outlook improves

Doha: A return in travel demand will allow airlines to reduce their losses in 2022 and possibly reach profitability in 2023, according to the International Air Transport Association (IATA). Industry losses are expected to reduce to $9.7 billion, compared to the previous estimate of a loss of $11.6 billion. This is a “huge improvement” from losses of $137.7 billion in 2020 and $42.1 billion in 2021, said IATA. Industry-wide profitability in 2023 appears within reach with North America already expected to deliver an $8.8 billion profit in 2022, it said, adding that strong pent-up demand, the lifting of travel restrictions in most markets, and low unemployment will result in passenger numbers reaching 83 per cent of pre-pandemic levels in 2022. Despite economic challenges, cargo volumes are expected to set a record high of 68.4 million tonnes in 2022. “Airlines are resilient. People are flying in ever greater numbers, and cargo is performing well against a backdrop of growing economic uncertainty,” said Willie Walsh, IATA’s Director General. “It is a time for optimism, even if there are still challenges on costs, particularly fuel, and some lingering restrictions in a few key markets.” Revenues are rising as COVID-19 restrictions ease and people