It's going to be a long, hot summer. And not just meteorologically speaking. The air transport industry is preparing for, or rather has already entered the throes of, the long-awaited rebound in travel demand. But, apparently, not all that glitters is gold.
After two years of unprecedented crisis the signs are encouraging, said IATA Director General Willie Walsh at the recent General Assembly in Doha. Estimates are rosier than previously, there should be a return to profitability for airlines as early as 2023, and the overall loss this year will stand at $9.7 billion, almost two down from the last forecast of $11.6 billion. And significantly lower when compared to the industry’s $42.1 billion in the red in 2021.
But there are still clouds on the horizon. From extremely high fuel costs to inflation, and geopolitical tensions in more than one area of the world - first and foremost the ongoing conflict in Ukraine triggered by Russia's invasion. Add slower economic growth, and the persistence of Covid travel restrictions in an area as strategic as Asia for air traffic. Then toss in the personnel shortage affecting the entire air transport sector. All of which could jeopardize the positive trend of recent months. But “it’s a time for optimism,'” observes Walsh, citing the resilience of an industry that is now “leaner, stronger and more agile.”
Mariella Cattaneo
Journalist
