in 2023 for the companies only 2.1 euros of profit per passenger – Corriere.it

Airlines are preparing to close 2023 with a return of passengers close to pre-pandemic values, 4.35 billion worldwide against 4.54 billion in 2019. But revenues and profits will still remain below four levels years ago, so much so that the profits for each embarked traveler will amount to $2.25. what emerges from the annual assembly of Iata, the international association of airlines, which takes place in Istanbul, Turkey.

The earnings

In short, on traffic volumes, Iata believes that the aeronautical sector is destined to turn the page this year. On the financial front, there is no shortage of critical issues. In 2023 the total estimated turnover for companies is around 803 billion dollars: of these 546 billion from passenger traffic, against 607 billion in 2019. The average fare charged to people will be around 126 dollars against 133.6 in 2019 , even if in the regional data some areas – such as Europe and the United States – the average is destined to be higher than the pre-Covid period.

Freight transport

In the numbers we note the significant drop in revenues from the transport of the markets which, after reaching the historical record of 210 billion dollars in 2021, this year should bring 142.3 billion dollars from cargo into the coffers of the companies, in any case more than the 100 8 billion in 2019. Overall, the net profits for the entire sector will be around 9.8 billion dollars (it was 26.4 billion four years ago), therefore 2.25 dollars per passenger carried. For 2022, IATA has almost halved its projected net loss to $3.6 billion. In the period 2020-2022, the sector thus lost 183.3 billion due to Covid.

In areas

But the world average hides the different trend of the various areas, even more so after the pandemic with different reopening periods between the regions. North America (USA, Canada, Mexico) is confirmed as the part that is doing better with 11.5 billion dollars of net profit of the airlines, ie 9.5 for each passenger embarked. In second place is Europe: the airlines of our continent will close with 5.1 billion dollars in net profits, ie 4.36 dollars per customer. Middle Eastern companies are also on positive ground with 2 billion in profits (9.41 dollars per passenger). Companies in Africa (-500 million), Latin America (-1.4 billion) and Asia-Pacific (-6.9 billion) are still making losses.

Costs

The companies’ financial performance for 2023 is better than expected at the end of last year, comments Willie Walsh, director general of IATA. Which is also reminiscent of the high operating costs also caused by the price of kerosene. Walsh – who was previously managing director of IAG, holding company of British Airways, Iberia, Vueling, Aer Lingus – attacks the still high taxation. They say aviation isn’t taxed enough, but that argument doesn’t hold water and our numbers bear it out.

Taxes

IATA – continues the director general – analyzed the data of almost 7 billion tickets issued for international flights in the period 2018-2023 and discovered that the airlines paid over 380 billion dollars in taxes and charges, that is a third of the full ticket price charged to travellers. If, Walsh points out, we also add the data on domestic flights, the total taxation rises to 500 billion dollars.