The airline industry trade body has doubled its industry profit forecast for this year to $9.8 billion, after many groups reported signs of recovery in their recent results.
The carrier is benefiting from a recovery in passenger and cargo demand at a time when fleet growth is constrained by production difficulties at Boeing and Airbus.
The IATA forecast was compared with the industry’s net loss of $3.6 billion in 2022 and Iata’s forecast in December for a net profit of $4.7 billion this year. Iata expects revenues of $803 billion in 2023, up 9% from 2022.
Iata director general Willie Walsh said the airline’s financial performance this year had exceeded expectations, with “several positive developments” supporting stronger profitability.
“China lifted Covid-19 restrictions earlier in the year, earlier than expected,” Walsh said, adding that cargo revenues were still higher than pre-pandemic levels, although cargo volumes were not.
“On the cost side, there is some relief,” Walsh added. “Jet fuel prices, while still high, have moderated in the first half of the year.”