Doha. It is expected that good days will come soon for the global airline industry. Willie Walsh, director general of global aviation body IATA, said on Monday that global airline losses will fall to $9.7 billion this year, from $52 billion in 2021. Apart from this, he has expressed hope of increasing profits in the global airline industry in 2023.
The IATA represents about 290 aircraft, which accounts for 83 percent of global air traffic. Walsh told the IATA’s 78th Annual General Meeting here that the outlook for airlines globally is positive, but the business environment remains challenging.
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business growth forecast
Referring to all the challenges, he said that in April, inflation in the Organization for Economic Co-operation and Development (OECD) is above nine percent. The OECD is a grouping of 38 countries. “According to our outlook (global), this year’s gross domestic product (GDP) is expected to grow at 3.4 percent,” Walsh said. This growth is positive but lower than previous forecasts.
Effect of rising fuel prices
He said that the World Bank expects a 50 percent increase in energy prices compared to last year (2021). According to Walsh, the illegal invasion of Russia-Ukraine has destabilized globalization. Along with this, there has been a threat to the world’s food supply.
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loss will be less
He said that it would be a big challenge to fix the battered financial situation of airlines with loans of $ 650 billion. Walls said, ‘In the midst of all this, both the desire to travel and the need to carry the goods are quite strong. Our latest analysis shows a loss of $42 billion in 2021, which is high but down from the earlier estimate of $52 billion. He believes that this year the global loss will be reduced by $ 9.7 billion and in 2023, the industry should be in a state of profit.
Tags: airline, Airline News, Airlines
FIRST PUBLISHED : June 20, 2022, 20:52 IST