Over 4 Billion Airline Passengers Expected to Fly in 2023
The International Air Transport Association (IATA) recently announced an expected strengthening of the airline industry in its outlook for 2023.
Published on June 5, 2023, these highlights include but are not limited to, some 4.35 billion people are expected to travel in 2023.
And total revenues are expected to grow 9.7% year over year to $803 billion, the highest amount since 2019 ($838 billion).
In a press release, IATA's Director General Willie Walsh stated, "Economic uncertainties have not dampened the desire to travel, even as ticket prices absorbed elevated fuel costs."
"But with airlines just making $2.25 per passenger on average, repairing damaged balance sheets and providing investors with sustainable returns on their capital will continue to be a challenge for many airlines," said Walsh.
It should be noted that the airline industry entered the recent pandemic at the end of a historic profit streak that saw an average net profit margin of 4.2% for the 2015-2019 period.
Another indication of the air industry rebounding was Expedia Group's latest Traveler Insights which revealed traveler searches increased by about 25% in Q1 2023.
And as of June 4, 2023, the U.S. TSA reported airport screening activity in June 2023 had caught up with 2019.
However, the U.S. CDC says tens of millions of people are not appropriately vaccinated before visiting disease-endemic countries.
The U.S. Travel Association recently reported 43% of international travelers require pre-arrival vaccine authorizations such as for yellow fever.