GENEVA: The global airline industry is projected to report a lower loss at USD 6.9 billion in 2022, mainly due to stronger passenger yields and cost control by carriers amid rising fuel prices, according to industry body IATA.
In June, the International Air Transport Association (IATA) projected the industry loss at USD 9.7 billion. In October 2021, it forecast a loss of USD 11.6 billion for this year.
On Tuesday, IATA said the global airline industry is expected to return to profitability in 2023 and post a small net profit of USD 4.7 billion.
After being significantly impacted by the coronavirus pandemic, the airline industry is on the recovery path.
In 2022, airline net loss is expected to be USD 6.9 billion. This is significantly better than loss of USD 42 billion and USD 137.7 billion in 2021 and 2020, respectively, it said.
''We are on the right path... but still a long way to go,'' IATA Director General Willie Walsh said at a briefing here on Tuesday.
For 2022, IATA said the improved prospects stem largely from strengthened yields and strong cost control in the face of rising fuel prices.
''Passenger yields are expected to grow by 8.4 per cent (up from 5.6 per cent anticipated in June). Propelled by that strength, passenger revenues are expected to grow USD 438 billion (up from USD 239 billion in 2021),'' it noted.
In the Asia Pacific region, airlines are projected to post a loss of USD 10 billion this year and the loss is expected to narrow to USD 6.6 billion in 2023.
The Asia Pacific region, IATA said, is critically held back by the impact of China's zero COVID policies on travel.
''In 2023, passenger demand of 59.8 per cent is expected to outpace capacity growth of 47.8 per cent. Over the year, the region is expected to serve 70.8 per cent of pre-crisis demand levels with 75.5 per cent of pre-crisis capacity,'' the industry grouping said.
IATA is a global grouping of around 290 airlines.