IATA warned about more expensive airfare during its annual meeting in Dubai on Monday, June 3. Aside from the impact of the COVID-19 pandemic, which many carriers are still recovering from, IATA Director-General Willie Walsh explained other reasons why flights could get pricier.
IATA Warns About More Expensive Airfare
Time Magazine reported many reasons why airfare could become more expensive shortly. Among these is worsening global inflation. As of this writing, jet fuel costs remain high. This is a big deal since airplane fuel accounts for about one-third of all airline expenses globally.
Meanwhile, other airlines are having trouble decarbonizing their fleets because the supply of sustainable aviation fuel (SAF) is still limited.
"The airlines will continue to do everything they can to keep costs in control as much as possible for the benefit of consumers," explained Willie Walsh.
However, he added that it's unrealistic to expect carriers to be able to absorb all these rising costs. He further stated that, although they don't want to, they still need to make passengers shoulder some expenses.
IATA Predicts Better Airline Profits
According to The Aviation Week, IATA expects better profits from its members in 2024. The airline group shared its revenue forecasts, anticipating a $30.5 billion net profit for the airline industry.
The global airline industry, according to IATA, could reach almost $1 trillion in revenue. However, total expenses for carriers could also be a record high, possibly reaching $936 billion.
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