Airlines headed for record revenue in 2024 as travel soars, but profit margins remain thin

The International Air Transport Association (IATA) has revised its profit forecast for the airline industry in 2024, predicting record-high revenue of $996 billion, up 9.7% from the previous year. The projected net profits for the year are $30.5 billion, an increase from the previous estimate of $25.7 billion. However, the IATA report highlights that expenses for global airlines are also expected to reach a record high, resulting in thin profit margins. It states that return on invested capital for 2024 is projected to be 5.7%, which is below the average cost of capital. The director of IATA called for addressing supply chain issues and reducing regulatory and tax burdens to improve profitability.