The global airline trade association IATA announced on Tuesday that the airline industry will generate record profits next year, despite persisting supply chain challenges that have resulted in slower aircraft deliveries and a delay in the rollout of more fuel-efficient jets. Airbus and Boeing, the world’s main jetmakers, have both experienced delivery delays to airline customers in recent years.
Airlines claim they cannot reduce fuel costs while carrying more people unless they upgrade to newer, more efficient aircraft. Still, IATA expressed optimism for the coming year, pointing to Europe in particular as it overtakes the United States as the region with the highest net profit per passenger.
Airlines have successfully built shock-absorbing resilience into their businesses, resulting in consistent profitability,” said International Air Transport Association director general Willie Walsh in a statement.
He later noted that a minor drop in jet fuel prices could bring some financial respite, but regulatory constraints, notably in Europe, as well as uncertainty caused by global conflict, drone invasions, and GPS interference are impeding the potential for even higher profitability.
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