The International Air Transport Association (IATA) has announced an upgrade to its outlook for the airline industry’s 2022 financial performance as the pace of recovery from the COVID-19 crisis quickens.
Industry losses are expected to reduce to -$9.7 billion (improved from the October 2021 forecast for an $11.6 billion loss). That is a huge improvement from losses of $137.7 billion in 2020 and $42.1 billion in 2021.
Strong pent-up demand, the lifting of travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fueling a resurgence in demand that will see passenger numbers reach 83% of pre-pandemic levels in 2022.\
Cargo volumes are expected to set a record high of 68.4 million tonnes in 2022. Further, losses will be cut to $9.7 billion this year and IATA projects profitability to clock in in 2023.
Industry revenues are expected to reach $782 billion, 93.3% of 2019 levels.
Flights operated in 2022 are expected to total 33.8 million, which is 86.9% of 2019 levels (38.9 million flights).
Passenger revenues are expected to account for $498 billion of industry revenues, more than double the $239 billion generated in 2021. Scheduled passenger numbers are expected to reach 3.8 billion, with revenue passenger kilometers (RPKs) growing 97.6% compared with 2021, reaching 82.4% of 2019 traffic.
Cargo revenues are expected to account for $191 billion of industry revenues. That is down slightly from the $204 billion recorded in 2021, but nearly double the $100 billion achieved in 2019.
Overall, the industry is expected to carry over 68 million tonnes of cargo in 2022, which is a record high.
In Africa, lower vaccination rates have dampened the region’s air travel recovery to date. However, net losses are forecast to be $0.7 billion in 2022.
See Also:
