Airlines' financial recovery is expected to happen as early as 2023.
(Photo : Photo by AMANUEL SILESHI/AFP via Getty Images)
A picture taken on March 7, 2021 shows an airplane of Ethiopian airlines delivering boxes of Oxford/AstraZeneca Covid-19 vaccines, as a part of the UN-led Covax initiative which is working to facilitate vaccine access for poorer countries, at Addis Ababa international airport, Ethiopia, on March 7, 2021.
If the prediction of IATA (International Air Transport Association) is correct, then it will be the industry's first time to return to profit since the COVID-19 pandemic began.
The global coronavirus pandemic has greatly affected the flight sector.
Because of the health restrictions imposed, travel agencies were not able to make revenues as people tend to stay in their locations.
But this may all soon change this coming 2023.
Airlines' Financial Recovery to Happen by 2023
According to The Straits Times' latest report, the airline industry is expected to make over $4 billion in net profits in 2023.
(Photo : Photo by CHRISTOF STACHE/AFP via Getty Images)
A woman walks past a board displaying cancelled flights of German airline Lufthansa at the "Franz Josef Strauss" airport in Munich, southern Germany, on November 7, 2019, as cabin crews kicked off a strike. - Tens of thousands of Lufthansa passengers faced disruptions as cabin crew in Germany started to stage a "massive" 48-hour walkout in the biggest escalation yet of a bitter row over pay and conditions.
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IATA shared this prediction on Tuesday, Nov. 6, saying that it will happen despite fears of a global recession.
Aside from this, the air transport agency also claimed that the net losses of the flight sector for 2022 are expected to be $6.9 billion.
Enthusiasts said the estimated net losses are lower than previously predicted and less than net losses back in 2020 and 2021.
"A $4.7 billion profit on industry revenues of $779 billion also illustrates that there is much more ground to cover to put the global industry on a solid financial footing," said IATA Director General Willie Walsh.
The predictions made by IATA show that airlines can soon make money again. However, the expected net profit is still far from the one generated in 2019, which is more than $26 billion net profit.
This means that much is needed before the airline industry can recover from the effects of the global COVID-19 pandemic.
Higher Air Fares to Arrive
Although the airline industry hasn't fully financially recovered yet, the sector is already making efforts to reach its net-zero goal by 2050.
This plan aims to reduce the carbon emissions produced by airlines, as reported by The Guardian.
But, it also means that passengers could face higher ticket prices. You can click this link to learn more about upcoming air travel cost hikes.
Since net-zero needs aircraft that don't emit harmful gases, new e-airplanes are already being launched.
Recently, an Air-Canada-backed startup launched its new electric aircraft.
In 2021, electric planes were already predicted to be the airline industry's zero-emission solution.
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