In 2024, airlines are projected to achieve record revenue due to the increase in travel, however, their profit margins remain narrow.

• The airline industry is expected to generate a record-breaking revenue of $996 billion in 2024, according to the International Air Transport Association, which represents a 9.7% increase from the previous year.
• The cost of capital for global airlines is expected to be lower than their returns on invested capital, as their total expenses are projected to reach a record high.
• IATA director Willie Walsh stated on CNBC that our profits are so thin that we only earn $6.14 per passenger, which is barely enough for a coffee in many parts of the world.

The airline industry is expected to generate $996 billion in revenue in 2024, according to the International Air Transport Association, which represents a 9.7% increase from the previous year.

The IATA Annual General Meeting held in Dubai on Monday revealed that the airline industry's profitability outlook for the year is expected to be $30.5 billion, an increase from the previously forecasted $25.7 billion published in December 2023.

The global economy relies heavily on air cargo to transport the $8.3 trillion of trade that reaches customers through the air, with a predicted five billion air travelers in 2024, according to Willie Walsh, IATA's director general, in the organization's press release.

While revenues and profits are experiencing positive growth, expenses are also increasing, resulting in narrow profit margins, according to the IATA report.

The global airlines industry is projected to spend $936 billion in 2024, a 9.4% increase from the previous year, and a record high. However, the industry body also predicts that the return on invested capital in 2024 will be 5.7%, which is 3.4 percentage points below the average cost of capital.

"The airline industry is on the road to sustainable profits, but there is still a significant gap to be bridged. A 5.7% return on invested capital is far below the cost of capital, which exceeds 9%," Walsh stated.

"Earning $6.14 per passenger reveals our profits are thin—barely enough for a coffee in many regions."

The IATA director urged addressing longstanding supply chain problems and reducing the burden of excessive regulations and taxes.

He contended that implementing more business-friendly policies would enhance airlines' capacity to "expedite investments in sustainability." Airlines contribute approximately 3% of global carbon emissions, and IATA has underscored the necessity for the industry to attain net-zero carbon emissions by 2050, a goal that environmental experts and scientists have met with skepticism.