Global airlines raise 2024 profit outlook as travel soars

Global airlines on Monday raised their profit forecast for 2024 and projected industry wide revenues just shy of $1t as a record number of travellers board flights. The IATA said it expected the worldwide industry to generate $30.5b of profit this year, higher than an upwardly revised $27.4b in 2023 as carriers keep a lid on underlying labour costs despite recent strikes. That comes just four years after the industry collapsed to a $140b loss in 2020 as a result of the pandemic and is above the $25.7b forecast for 2024 issued in December. "The environment is better than we had expected, particularly in Asia," Director General Willie Walsh told Reuters on the sidelines of an annual meeting of IATA's more than 300 members, which account for more than 80% of global air traffic. However, the airline industry warned its ability to serve a strong rebound in travel demand is being hampered by disruption to global supply chains, including deliveries of its own fleets. Passenger yields - or the average amount paid by a passenger to fly one mile - are expected to strengthen by 3.2% compared with 2023, IATA said in a twice-yearly economic outlook. In part, that is because capacity growth is constrained, driving up average fares.<br/>