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While the three major US airlines, Delta Air Lines (New York Stock Exchange:DAL), United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) — have had decent stock returns so far this year, 2024 is shaping up to be even better.
The global airline industry can We expect to make a net profit of $25.7 billion in 2024, according to the International Air Transport Association (IATA). That compares to $23.3 billion projected for 2023.
Operating profit is projected to reach $49.3 billion in 2024, an increase of $8.6 billion from 2023.
In 2024, revenue is expected to reach a record $964 billion, up 7.6% year-on-year.
Around 4.7 billion people are expected to travel in 2024, a figure that surpasses the previous record of 4.5 billion in 2019.
While the industry has largely recovered in terms of passenger numbers reaching pre-pandemic levels, this has taken its toll. “It also appears that the pandemic has cost aviation about four years of growth,” said IATA Director General Willie Walsh. “From 2024 onwards, the outlook indicates that we can expect more normal growth patterns for both passengers and cargo.”
Cargo is also expected to see a modest increase in 2024, with 61 million tonnes compared to 58 million tonnes projected for this year.
The price of jet fuel is expected to average $113.8/barrel for a total fuel cost of $28 billion in 2024. That's 31% of the operating costs of airlines that are projected to use 99 billion gallons of fuel in the new year.
Although many air travelers may disagree, IATA said that plane tickets have become cheaper. The average round-trip airfare in 2023 is expected to be $254, down from the average fare of $315 seen in 2019 (figures are based on constant 2018 dollars).
Other US airlines: Southwest Airlines (New York Stock Exchange:LUV), JetBlue Airways (JBLU), Alaska Air Group (ALK), Spirit Airlines (SAVE), Hawaiian Holdings (HA) and Frontier Group Holdings (ULCC).
Foreign airlines: International Consolidated Airlines Group (OTCPK:ICAGY), Deutsche Lufthansa (OTCQX:DLAKF), Latam Airlines Group (OTCPK:LTMAY), Copa Holdings (COP), Azul (AZUL) and Gol (GOL).
Cargo carriers: Air Transport Services Group (ATSG), Forward Air Corp. (FWRD), Deutsche Post (OTCPK:DHLGY), FedEx (FDX) and United Parcel Service (UPS).
