Airlines to Earn Just Over $6.14 per Passenger in 2024, 'Barely Enough for a Coffee'
The International Air Transport Association predicts global airline revenue will increase by 9.7% by 2023. While revenue is projected to grow, total airline expenses are also expected to reach a record high, up 9.4% year-over-year. Profit margins for airlines remain thin, with an expected return on capital of just over 5% in 2024, below the average cost of capital of over 9%. The trade association estimates airlines will earn just over $6.14 per passenger in 2024, which it says is 'barely enough for a coffee' in many places. Record passenger numbers of 5 billion are expected in 2024, showing strong demand but tight margins.
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00:00 It's Benzinga and here's what's on the block.
00:02 The International Air Transport Association predicts global airline revenue will increase
00:07 9.7% from 2023. While revenue is projected to grow, total airline expenses are also expected
00:14 to reach a record high, up 9.4% year over year. Profit margins for airlines remain thin,
00:19 with an expected return on capital of just over 5% in 2024, below the average cost of capital of
00:26 over 9%. The trade association estimates airlines will earn just over $6.14 per passenger in 2024,
00:33 which it says is barely enough for a coffee in many places. Record passenger numbers of 5 billion
00:39 are expected in 2024, showing strong demand but tight margins. For all things money, visit
00:44 Benzinga.com.