The global aviation sector will recover more strongly from the effects of the coronavirus pandemic this year than previously estimated, and could find a plus next year, the International Air Transport Association (IATA) expects.
With its annual general meeting in Doha, IATA on Monday released estimates of falling global losses this year to $9.7 billion, up from $42.1 billion last year. The association previously predicted a $11.6 billion drop this year.
In estimates for 2023, IATA CEO Willie Walsh expects profitability to return.
While North American airlines could make a profit of $8.8 billion this year, losses will continue to be recorded in other parts of the world, Walsh said.
European airlines could reduce their annual losses by about two-thirds, to $3.9 billion, and Asia-Pacific expects losses to drop to $8.9 billion.
Continued restrictions on measures to combat re-pandemics in China have slowed demand recovery, IATA said.
Russia's invasion of Ukraine has also pushed profits, increasing fuel costs and forcing airlines to bypass routes between Europe and Asia, according to IATA.