Global air travel volume to surpass pre-COVID-19 levels in 2024

Experts estimate that in 2024, the amount of air travel globally will revert to pre-COVID-19 levels, with the Asia-Pacific region setting the pace. It is anticipated that this increase in demand would lead to a good year for airline profits.

In 2024, the aviation industry is anticipated to have completed its recovery from pandemic-related losses, having had a notable upturn in 2022 and 2023. In addition to $964 billion in sales, the International Air Transport Association projects that airlines will make $25.7 billion in profits in 2024.

Even with the optimistic projection, the industry’s robust expansion is hampered by issues including poor profit margins and ongoing supply issues. By the beginning of 2024, the Asia-Pacific area should have completely recovered, according to the Association of Asia-Pacific Airlines (AAPA).

The upturn in 2023 creates the foundation for a prosperous 2024 marked by a rise in the demand for services like entertainment, food and drink, and travel. Even while there are risks, including as potential losses in the Chinese market, overall economic stability and unmet travel demand are expected to support growth.

However, due to supply chain issues that affect aircraft delivery and maintenance, the industry faces constraints. There is still a problem with delays for manufacturers, particularly Airbus and Boeing, which reduces total airline capacity.

With a projected net profit margin of 2.7%, the airline industry’s low profit margins continue to be concerning. In 2024, external factors that might affect the company include regional conflicts, fuel prices, and macroeconomic conditions. Experts are hopeful about the strength of the travel demand in spite of these challenges.

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Original story by: The Strait Times