Airlines expected to turn a profit in 2023

Despite fears of a global recession, the airline industry is expected to turn to a profit in 2023 for the first time in four years.

A forecast by the International Air Transport Association predicts airlines will earn a net profit of $4.7 billion.

The organization says net losses for 2022 were expected to be $6.9 billion. That’s less than it had previously forecast and significantly better than both 2021 and 2020.

The last time the industry made money was 2019 before the pandemic pushed demand down.

Demand has increased with the reopening of borders closed by the pandemic and a strong U.S. dollar has encouraged more Americans to travel overseas.

Corporate travel has also been making a comeback.

However, certain challenges remain, including delayed plane deliveries, pilot shortages and airport infrastructure issues.

Categories: National News