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.
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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, 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, 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.
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
Total income was higher by 10% year-on-year (YoY) at AED 300 million in the six-month period
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United Arab Bank PJSC (UAB or “the Bank”) has announced its financial results for the six months ended 30th June 2024. UAB reported a net profit before tax of AED 152 million for H1 2024, a 26% increase compared to AED 121 million for H1 2023. The net profit after tax for H1 2024 stood at AED 139 million, up 15% from AED 121 million in the same period last year. Earnings per share rose to AED 0.07 in H1 2024 from AED 0.06 in H1 2023.
Total income increased by 10% year-on-year to AED 300 million for H1 2024, compared to AED 273 million for H1 2023, driven by a 26% increase in net interest income. The Bank’s capital position remains strong with a CET1 ratio of 13% and a total capital adequacy ratio (CAR) of 18%.
UAB‘s liquidity profile is robust, with advances to stable resources ratio of 75% and an eligible liquid asset ratio of 19%, both comfortably above regulatory thresholds. The Bank’s credit ratings were affirmed by Fitch and Moody’s at BBB+/Ba1, with stable and positive outlooks respectively.
UAB’s performance in the first half of 2024 demonstrates significant growth in total assets, increasing by 12% compared to December 2023, and reflects a strategic focus on quality and farsighted risk management. These results indicate that the Bank is well-positioned to continue its growth trajectory.
Commenting on the Bank’s performance, H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, said: “UAB’s strong performance in the first half of 2024 reflects the successful implementation of our growth strategy and reinforces our commitment to delivering sustainable value to our shareholders. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”
He added: “As we move ahead into the second half of the year, we remain committed to enhancing our customers’ banking experience and contributing to the growth and prosperity of the UAE’s economy.
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented: Our customer-centric approach and sustainable growth model has led to a 15% increase in net profit and a 12% growth in total assets. Our positive performance is a testament to the successful execution of our strategic priorities and clear evidence of the success of the many initiatives that have been implemented at the Bank. Going forward, we will continue investing in our growth strategy and digital capabilities, while equally focusing on developing innovative products and services that meet our customers aspirations whilst upholding the highest standards of compliance and internal controls.”
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
