Dubai. The global aviation industry, which is growing rapidly after recovering from the pandemic, is expected to report a net profit of $30.5 billion and record revenue of nearly one trillion dollars. IATA expressed this possibility on Monday. Expecting the number of air passengers to reach five billion this year, the International Air Transport Association (IATA) said that the return on invested capital is expected to be 5.7 percent, which is 3.4 percent less than the average cost of capital in 2024.
According to IATA, which represents more than 330 airline companies around the world, aviation industry revenue is expected to reach a record high of $996 billion this year, while passenger revenue is expected to grow 15.2 percent to $744 billion. “Profitability is expected to strengthen in 2024 as revenue grew slightly faster than expenses. However, net profit is expected to be $30.5 billion, up 11.3 percent from $27.4 billion estimated for 2023,” IATA said in a statement.
Industry spending is expected to rise to $936 billion this year, up 9.4 per cent from 2023. According to the Aviation Outlook Report released at IATA’s Annual General Meeting, the average price of aviation fuel ATF is expected to be US$113.8 per barrel in 2024, making the total fuel bill $291 billion, accounting for 31 per cent of all operating costs. IATA Director General Willie Walsh said the expected total net profit of $30.5 billion in 2024 is a major achievement considering the heavy losses caused by the recent pandemic. He said a record five billion air passengers are expected this year.
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