Optimistic air travel demand will help the industry surpass previous profit estimates for 2023. (Source: Getty)

According to IATA, the number of passengers is estimated to increase by 3.39 billion in 2022 and is equivalent to about 96% of the total number of passengers in 2019 (4.54 billion) due to the lifting of strict control measures to prevent Covid-19.

Air travel demand is expected to surge globally. The association said that airlines based in the Asia-Pacific region are expected to see the highest increase in demand of 63% as every country in the region lifts Covid-19 travel restrictions.

“China lifted Covid-19 restrictions earlier this year, earlier than expected, putting the industry on track for faster profit improvement,” said Willie Walsh, IATA Director General.

Airlines based in Africa and the Middle East are also forecasting passenger traffic to increase by 30.1% and 20.8% respectively. Airlines based in Europe will see passenger traffic increase by 19.6%, while North America will see a 16.5% increase.

IATA, which represents about 300 airlines and accounts for 83% of global air traffic, said optimistic air travel demand will help the industry surpass its previous profit estimate for 2023.

The industry’s total net profit is expected to reach $9.8 billion in 2023, more than double the $4.7 billion forecast in December 2022. The industry suffered a total net loss of $3.6 billion in 2022. Total revenue for the airline industry in 2023 is forecast to increase by 9.7% to $803 billion, or nearly 96% of 2019 levels.

North American airlines are expected to lead the way with $11.5 billion in net profit, up 26.4% from 2022, and net profit at European airlines is expected to rise 24.4% to $5.1 billion.

However, the aviation industry still faces a number of economic and geopolitical risks. Major central banks around the world have raised interest rates sharply to fight inflation, which could lead to a recession. While the crisis in Ukraine could also cause a negative outlook for the global aviation industry."