STORY: Global airlines raised their profit forecast for this year on Monday (June 3).
They projected industry wide revenues just below $1 trillion as a record number of travellers board flights.
The International Air Transport Association – or IATA – expects the industry to generate $30.5 billion of profit in 2024.
That’s $3 billion more than last year as carriers keep down underlying labor costs despite recent strikes.
IATA Director General Willie Walsh said the environment is better than the industry had expected, particularly in Asia.
But Walsh warned supply chain problems are not easing as fast as airlines want, and could last a while.
“It’s probably a positive that it’s not getting worse, but I think it’s going to be a feature of the industry for a couple of years to come, I see this continuing into 2025 and probably into 2026.”
IATA said airlines had been hit by unforeseen maintenance issues.
Industry sources claimed Friday (May 31) planemaker Airbus faces a new surge in supply problems, but the firm said it is sticking with full-year delivery goals.
While rival Boeing is producing far fewer of its best-selling 737 MAX jets than originally planned.
That comes after a mid-air cabin panel blowout in January led U.S. regulators to cap its production.
Despite these setbacks, IATA more than trebled its industry profit forecast to $2.2 billion in Asia.
North America should also stay as the most profitable region at $14.9 billion.