Air traffic worldwide is strong enough this year so far that industry leaders are predicting it will come close to or possibly even beat the records set in 2019, and airlines are making money on it.
A report from the International Air Transport Association (IATA), which represents hundreds of airlines worldwide is predicting at least 4.35 billion passengers for 2023. It also said that airline losses in 2022 were only half the predicted $3.6 billion and that this year should see "stronger profitability."
IATA's optimism is boosted by fuel prices that have moderated over the first part of the year and the continuing strong demand for seats even as fares have risen to cover added fuel and other costs. The trend is also helped by the opening of the last countries that had held down travel because of the pandemic, especially China. which lifted its restrictions only in December.
The organization estimated the industry's losses as $137 billion in 2020 when the industry nearly shut down due to pandemic lockdowns and restrictions, followed by $42 billion in 2021 and $1.8 billion last year.
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