Airline passenger numbers to Exceed Pre-Pandemic Figures with Steady Profit Growth into 2024 | Kanebridge News
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Airline passenger numbers to Exceed Pre-Pandemic Figures with Steady Profit Growth into 2024

The aviation industry has surpassed pre-pandemic passenger numbers, with a remarkable $39 billion in profits reported for 2023, indicating a significant recovery.

Mon, Mar 25, 2024 12:58pmGrey Clock 2 min

The International Civil Aviation Organization(ICAO) forecasts a 2% rise in passenger air traffic in the first quarter of 2024 over the levels of 2019, with an expectation that airlines will maintain their profitable momentum from 2023.

The projection for the entire year indicates a demand increase of 3% above the figures of 2019, which could climb to 4% if the recovery pace quickens on routes that have wrapped in regaining pre-pandemic traffic.

This scenario represents a Compound Annual Growth Rate (CAGR) of approximately 0.5% spanning from 2019 through 2024.


Key Insights from ICAO:

Salvatore Sciacchitano, President of the ICAO Council

Salvatore Sciacchitano, President of the ICAO Council, highlighted the critical role of member states in aligning pandemic responses with ICAO guidelines to aid in air service recovery. The implementation of these post-pandemic strategies is vital for ensuring the recovery’s resilience and sustainability.

The global demand for freight, measured in Freight Tonne-Kilometres (FTK), is expected to be 2% lower than 2019 levels in 2024, largely due to anticipated economic downturns worldwide.

ICAO Secretary General, Juan Carlos Salazar

ICAO Secretary General, Juan Carlos Salazar, emphasized the contribution of governmental goals for air transport decarbonisation by 2050 to the environmental sustainability of the industry’s recovery.

Efforts include accelerating the adoption of new technologies, operational enhancements, and cleaner aviation fuels essential for decarbonisation.

Regional Traffic Highlights of 2023:

– Several major regional air routes achieved traffic levels exceeding those of 2019 by the end of 2023, including Intra-Europe; Europe to/from North America, the Middle East, Southwest Asia, and Africa; North America to/from Latin America and the Caribbean, Southwest Asia, Southeast Asia, and the Pacific; and the Middle East to/from Southwest Asia and Africa.

– Most international Asian routes, except for those to and from Southwest Asia, saw significantly reduced traffic compared to pre-pandemic levels in 2023.

Despite challenges like high fuel costs and economic uncertainties, the airline industry managed to secure $39 billion in total operating profits for 2023, matching the profit levels of 2019. This achievement was primarily driven by increased passenger yields and efficiency gains within the sector. Airlines in North America and Europe were the predominant profit contributors.

The ICAO’s Monthly Monitor continues to provide valuable insights and in-depth analysis of economic and aviation trends to airlines and aviation stakeholders.

With monthly updates and customizable options, it offers essential data for strategic planning and informed decision-making in navigating the aviation industry’s complexities.


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Preparatory Work for UAE to Oman Hafeet Rail Project Commences at Full Speed
Preparatory Work for UAE to Oman Hafeet Rail Project Commences at Full Speed

Preparations have begun on the transformative UAE to Oman Hafeet Rail network, revealing significant construction details during a site visit.

Thu, May 16, 2024 3 min

The $3bn Hafeet Rail project between the UAE and Oman will feature 60 bridges and a 2.5km tunnel, making it an “architectural and engineering marvel,” according to CEO Ahmed Al Musawa Al Hashemi.

Hafeet Rail has announced that preparatory work is moving full speed ahead for constructing the transformative railway link between the UAE and Oman. This announcement was made during a site visit attended by key officials, members of the Asyad and Hafeet Rail executive management teams, project contractors, and consultants.

Key Highlights

During the visit, attendees were introduced to the main components of the project, including passenger, repair, and shipping stations, as well as major bridges and tunnel sites.

The Hafeet Rail project is set to play a very important role in enhancing local and regional trade, unlocking new opportunities in the infrastructure, transportation, and logistics sectors, and fostering economic diversification. It will also strengthen bilateral relations between the UAE and Oman.

The project will involve constructing 60 bridges, some reaching heights of up to 34 meters, and tunnels extending 2.5 kilometres. The Hafeet Rail team showcased the latest rail technologies and innovative engineering and architectural solutions designed to navigate the challenging geographical terrain and weather conditions while maintaining high standards of efficiency and safety.

The rail network will boost various industrial sectors and economic activities and significantly impact the tourism industry by facilitating easier and faster travel between the two countries.

Ahmed Al Bulushi, Asyad Group Chief Executive Asset, noted that the project’s rapid progress reflects the commitment of the UAE and Oman to developing and realizing the project’s multifaceted benefits.

Investment and Future Impact

Al Bulushi added that investments in developing local capabilities and expertise in rail-related disciplines over recent years have enabled the project to reach the implementation phase successfully under the leadership of highly efficient and professional national talent.

Hafeet Rail’s CEO Ahmed Al Musawa Al Hashemi emphasized, “The commencement of preparatory works for construction is a testament to the robust synergy between all parties involved in both nations, achieving this milestone in record time. We are confidently laying down the right tracks thanks to the shareholders of Hafeet Rail and the expertise of local companies in Oman and the UAE, alongside international partners.”

During the site visit, the visitors explored some of the key preparatory sites, including Wadi Al Jizi, where a 700-meter-long bridge towering 34 meters will be constructed. This ambitious project is envisioned as an architectural and engineering marvel in a complex geographical landscape.

Future phases will require more collaboration, with a continued focus on quality, safety, and environmental considerations in line with the international industry best practices.

The Hafeet Rail project represents the first-of-its-kind railway network linking two Gulf nations, marking a significant shift in regional goods transportation. This efficient and reliable transportation option will reduce dependence on slower and less sustainable road transport.

Hafeet Rail promises a 40% reduction in shipping costs and a 50% in transit times compared to traditional land transportation methods, as it will be connecting five major ports and several industrial and free zones in both countries.

This shift will reduce reliance on road transport by cars and trucks and promote more sustainable shipping practices. The establishment of the railway network will also create significant opportunities for SMEs in construction, engineering, and logistics support, acting as a catalyst for economic growth and innovation within the domestic economy.

By linking major ports, the Hafeet Rail project will enable local SMEs to import, export, and distribute their products more effectively, enhancing their market reach and global competitiveness.


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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