Airlines around the world are currently benefiting from strong summer business after suffering heavy losses from the coronavirus crisis. However, airlines may not be able to reach pre-crisis levels.
Airlines around the world are looking forward to big profits this year: The International Air Transport Association (IATA) announced at its congress in Istanbul that the industry could generate a $9.8 billion surplus in 2023. In its previous profit forecast in December, the trade association had assumed $4.7 billion.
Willie Walsh, director-general of IATA, said: “The pandemic year is over and borders are open as usual. Many people not only have to travel, but they want to travel. They will do so year-round.” So far, high inflation has not Hindering demand, as the airline’s latest quarterly results show. Airlines are now gearing up for booming summer business.
“Less than a cup of coffee”
Airline profit levels are likely to remain far from the year before the pandemic, also because of higher kerosene prices: according to earlier information, the industry realized a $26.4 billion profit in 2019 from better-utilized aircraft. profit.
In addition to high kerosene prices, delivery problems at the aircraft maker are also causing problems for the company. Add to this the ever-rising airport tax. This applies in particular to Amsterdam Airport Schiphol and airports in South Africa. Furthermore, Walsh stressed that airline profitability remains too low. The companies currently make just $2.25 per passenger — “less than a cup of coffee or a subway ticket.”
Major order for Airbus
Meanwhile, planemakers are benefiting from a growing desire to travel: Airbus is close to receiving a record order from India, according to insiders. Indian low-cost carrier IndiGo wants to order 500 A320s from the European planemaker, people familiar with the matter said. However, so far there has been no official statement from Airbus or IndiGo.
If the deal goes through, it should be worth around $50 billion based on current list prices. However, deep discounts are common in such deals.