RIYADH: Aviation will not reach pre-pandemic profitability levels of $26.4 billion anytime soon because we don’t really see the gross domestic product growth accelerating but, according to International Air Transport Association’s Chief Economist Marie Thomsen, the industry will start seeing earnings in 2023.
Global airlines are now expected to post a $9.7 billion loss in 2022, an improvement from a revised $42.1 billion loss in 2021.
The 2022 forecast is nearly $2 billion better than an earlier expectation of an $11.6 billion loss.
COVID-19 fallout
At IATA’s Annual General Meeting in Doha, Thomsen told Arab News that COVID-19’s magnitude “makes all previous crises look like a slight cold.”
Despite the fact that China’s zero COVID-19 policy is affecting the aviation industry, she believes that the policy could be altered.
Thomsen explained that the virus has evolved, and while it has infectious variants, they are less deadly. In itself, the virus’ progression argues for fewer and fewer travel restrictions, she added.
She said that even if airlines are thriving, they will still feel the effects of the COVID crisis for decades to come.
HIGHLIGHTS
Global airlines are now expected to post a $9.7 billion loss in 2022, an improvement from a revised $42.1 billion loss in 2021.
The 2022 forecast is nearly $2 billion better than an earlier expectation of an $11.6 billion loss.
Future unpredictable
The risks are unpredictable and she does not…