On an upward trajectory: How the regional aviation industry is charting its recovery

On an upward trajectory: How the regional aviation industry is charting its recovery

Last month’s images of queues disrupting operations at UK’s prominent airports and the subsequent calls to cap passenger numbers by the country’s aviation authorities may not have gone down well with airlines and travellers, but in the larger – and probably brighter – picture, are indicative of the rapid recovery of the global aviation industry.

The International Air Transport Association (IATA) forecasts that 2022 will be a promising year for the aviation industry, as demand for travel returns, and industry-wide profitability is possible by 2023. The North American market is already expected to deliver a profit of $8.8bn by the end of this year. Industry losses are expected to reduce to $9.7bn (compared to the previous estimate of a loss of $11.6bn) for a net loss margin of -1.2 per cent. This is a huge improvement from losses of $137.7bn (-36 per cent net margin) in 2020 and $42.1bn (-8.3 per cent net margin) in 2021.

Driven by strong pent-up demand, eased travel restrictions, and growing employment rates, passenger numbers will reach 83 per cent of pre-pandemic levels this year. Cargo volumes are expected to reach a record high of 68.4 million tonnes in 2022.

“Airlines are resilient. People are flying in ever