Recently, the International Air Transport Association (IATA) has raised its forecast for the 2024 profits of the global aviation industry, expecting record numbers of passengers and industry revenues approaching $1 trillion.

In its latest report, IATA predicts a profit of $30.5 billion for the global aviation industry this year, up from the adjusted $27.4 billion in 2023. This outlook is also more optimistic than the association's forecast of $25.7 billion in December of the previous year. Just four years ago, the industry suffered losses of $140 billion in 2020 due to the impact of the COVID-19 pandemic.

The International Air Transport Association, representing over 300 member organizations and accounting for over 80% of global air transport, emphasizes that the sustained recovery in global air travel demand is a major driver of profit growth.

As the impact of the pandemic diminishes and people's willingness to travel increases, it has propelled the rapid recovery of the aviation industry. Additionally, airlines have effectively reduced costs by optimizing routes and improving operational efficiency, thereby enhancing profitability.

Regionally, IATA has doubled its profit forecast for the Asian aviation industry in 2024 to $2.2 billion. However, the association states that North America remains the most profitable region, with an expected profit of $14.9 billion, consistent with previous forecasts.

Overall, IATA expects total global aviation industry revenue to reach $996 billion this year, a year-on-year increase of 9.7%, reaching a historic high. Operating profit is expected to reach $59.9 billion, and total passenger numbers are expected to reach 4.96 billion, both reaching historic highs.

However, despite the rebound in demand, airlines still face a range of new issues, from shortages of sustainable aviation fuel to cancellations of some routes due to geopolitical tensions.

Another major bottleneck is the shortage of new aircraft, limiting production capacity. Boeing and Airbus are both striving to accelerate aircraft production to meet the demands of global airlines, but there are still hundreds of aircraft backlogged. IATA warns that the service capacity it can provide for the strong rebound in travel demand is being affected.

IATA also states that while profits are growing, expenses are also increasing, which is limiting the revenue per passenger.

Aviation activity is widely seen as a barometer of business or consumer confidence and trade. However, due to limited capacity growth, average fares have been pushed up. The association currently forecasts that passenger revenue will increase by 3.2% compared to 2023.

In contrast, due to the return of the freight market to normalcy after the outbreak of the pandemic, freight revenue is expected to decline by 17.5% in 2024.