Airlines head to record revenues in 2024, but profit margins remain weak

The International Air Transport Association has raised its forecast for aviation sector profits in 2024, anticipating revenues of $996 billion, a record high and a 9.7% jump from the previous year.

In revealing its profitability forecasts for this year, which were issued today, Monday, during the annual general meeting of the International Air Transport Association held in Dubai, it expected net profits of $30.5 billion, up from the previous forecast of $25.7 billion issued in December.

With a record number of air travelers expected to reach 5 billion in 2024, the human need to fly is stronger than ever.

Furthermore, the global economy relies on air freight to deliver $8.3 trillion in trade that reaches customers by air.

But while revenues and profits are enjoying tailwinds, expenses are also rising, leaving profit margins slim, the IATA report said.

Total global airline expenditures are expected to reach $936 billion, according to forecasts by the industry body – an annual increase of 9.4% and a record high. It also expects the return on invested capital in 2024 to reach 5.7%.