Despite persistent challenges such as inflation, operational constraints, and aircraft delivery delays, the global aviation industry saw stable profitability in the first quarter of 2024 compared to the previous year. According to the International Air Transport Association (IATA), the net profit margin for airlines stood at -1.1% in Q1 2024, a slight improvement from -1.3% in Q1 2023. Revenues showed a year-on-year increase of 9.8%, a significant deceleration from the 47% growth seen in Q1 2023. Revenue yields saw a slight decline, primarily due to the high base in Q1 2023, but yield excluding fuel costs actually increased.
Earnings Before Interest, Taxes, Depreciation, Amortization, Depreciation, and Rent (EBITDAR) increased by 8% year-on-year, reaching a margin of 10.1%. However, profitability remains under pressure compared to pre-Covid levels. Rising aircraft ownership costs and delays in new deliveries impacted net income profitability, but adjusted net margin without these factors would have reached approximately -0.1%. The first quarter’s performance bucks historical trends and may indicate potential for the rest of the year, although further analysis is needed.
#iata #icao #airlines #aircraft #aviation