The International Air Transport Association, IATA, has announced an upgrade to its chart for the financial performance of the airline industry in 2022 as the recovery from the coronavirus crisis accelerates.
According to the latest forecasts from the International Air Transport Association (IATA), industry losses are expected to fall to -9.2 billion euros for a net loss of -1.2 percent. This is a significant improvement compared to losses of €130.7 billion in 2020 and €39.9 billion in 2021.
The same forecasts that passenger numbers will reach 83 percent of pre-pandemic levels in 2022, TheSchengen.com reports.
“It is time for optimism, even if there are still challenges around costs, especially fuel, and some continuing restrictions in a few key markets,” said IATA Director-General Willie Walsh.
The International Air Transport Association notes that revenue is rising as CIVUD-19 restrictions are eased and people return to travel. However, it was emphasized that the challenge for 2022 is to keep costs in check.
Industry revenue is expected to reach €742.7 or 93.3 percent of 2019 levels. As for flights operated in 2022, the total number of flights is expected to be 33.8 million – 86.9 percent of 2019 levels (38.9 million flights) .
The International Air Transport Association (IATA) further states that passenger revenue is expected to represent 473.1 billion euros of industry revenue, more than double the 227 euros made in 2021. This year’s scheduled passenger numbers are expected to reach 3.8 billion, With passenger kilometers revenue growing by 7.6 percent compared to 2021.
In addition, the International Air Transport Association (IATA) indicated that total expenditures are expected to rise to 755.7 billion euros, an increase of 44 percent compared to 2021.
At €182.1 billion, the fuel is expected to be the industry’s largest cost component in 2022. Such a forecast is based on a projected average price of Brent crude of €9/barrel and €119 for jet kerosene.
The war in Ukraine is making Brent crude prices high. However, fuel will account for about a quarter of costs in 2022. A special feature of this year’s fuel market is the large difference between crude oil prices and jet fuel. Jet slit penetration remains well above historical standards, mostly due to capacity constraints at refineries,” says IATA.
The latter explained that there are a number of risk factors associated with this forecast, including the war in Ukraine, inflation, interest rates, the exchange rate, as well as COVID-19.
Previously, the International Air Transport Association (IATA) listed three lessons related to the pandemic for the government to restore public confidence. The International Air Transport Association has called on governments to apply these lessons to ensure that future global threats can be managed without closing borders.