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Jeddah - Yasmine El Tohamy - RIYADH: The profit of air carriers operating in the Middle East is expected to hit $3.1 billion in 2024, representing a rise of 4.8 percent from 2023 estimates, according to the International Air Transport Association.

IATA had previously estimated a net profit of $2.6 billion for air carriers in the region in 2023.

In a press statement, the association said that revenue passenger kilometers for air carriers in the Middle East will also mark an increase of 6.3 percent compared to 2023 estimates.

“The Middle East is expected to deliver a strong financial performance in both 2023 and 2024. The Middle East carriers have been swift to rebuild their international networks and restore their super-connector hubs. To that end, capacity is expected to grow faster than demand in 2024,” said IATA.

The global aviation body pointed out that 4.7 billion people are expected to travel internationally in 2024, signifying a historic high that exceeds the pre-pandemic level of 4.5 billion recorded in 2019.

The report added that the global airline industry’s net profit will hit $25.7 billion in 2024, representing a slight improvement over 2023, which is expected to reap a net profit of $23.3 billion.

“Considering the major losses of recent years, the $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience. People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity,” said Willie Walsh, IATA’s director general.

The aviation body added that the airline industry’s operating profits globally are expected to reach $49.3 billion in 2024 from $40.7 billion in 2023.

Walsh added: “The speed of the recovery has been extraordinary, yet it also appears that the pandemic has cost aviation about four years of growth. From 2024, the outlook indicates that we can expect more normal growth patterns for both passenger and cargo.”

According to the report, air carriers in North America are expected to report a net profit of $14.3 billion and $14.4 billion in 2023 and 2024, respectively.

“North America remains the standout region in terms of financial performance. It was the first market to return to profitability in 2022 and built on this performance in 2023 by delivering efficiencies, particularly in high passenger load factors,” said IATA.

Fueled by strong demand for air travel, carriers in the European region are expected to post a net profit of $7.7 billion and $7.9 billion in 2024.

On the other hand, air carriers in the Asia Pacific region will witness a loss of $100 million in 2023 before turning to a profit of $1.1 billion the next year.

“While some of the region’s main domestic markets like China, Australia and India recovered quickly from the pandemic, international travel to/from the region was subdued as China only eliminated the last of its international travel restrictions in mid-2023. China’s international travel remains 40 percent below pre-pandemic levels,” added IATA.

IATA revealed that air carriers in the Latin American will report a loss of $600 million in 2023 and $400 million in 2024.

Airline in the African region are also expected to post losses of $500 million in 2023 and $400 million in 2024.

“African carriers are expected to generate losses in both 2023 and 2024. The continent remains a difficult market in which to operate an airline, with economic, infrastructure, and connectivity challenges impacting the industry performance,” added IATA.