Meanwhile, the three major U.S. airlines are Delta Air Lines (New York Stock Exchange: Dal), United Airlines (NASDAQ:UAL), and American Airlines (NASDAQ:AAL) has recorded decent stock returns since the beginning of the year, and 2024 is poised to get even better.
The global airline industry has high expectations. According to the International Air Transport Association (IATA), net profits are expected to be $25.7 billion in 2024. This compares to a projected $23.3 billion in 2023.
Operating income is expected to reach $49.3 billion in 2024, an increase of $8.6 billion from 2023.
Revenue in 2024 is expected to reach a record $964 billion, an increase of 7.6% year over year.
Approximately 4.7 billion people are expected to travel in 2024, surpassing the previous record of 4.5 billion in 2019.
The industry has largely recovered ridership to pre-pandemic levels, but it has also come at a cost. “The pandemic appears to have cost the airline industry about four years of growth,” IATA Director General Willie Walsh said. “Prospects indicate that we can expect a more normal growth pattern for both passenger and cargo from 2024 onwards.”
Cargo is also expected to increase slightly in 2024, to 61 million tonnes compared to this year’s forecast of 58 million tonnes.
Jet fuel prices are expected to average $113.8 per barrel in 2024, out of a total fuel cost of $28 billion. This corresponds to 31% of the airline’s operating costs, which in the new year he is expected to use 99 billion gallons of fuel.
Although many air travelers may disagree, IATA said That means air tickets are cheaper. The average round-trip airfare in 2023 is expected to be $254, lower than the 2019 average fare of $315 (figures based on constant 2018 dollars).
Other US airlines: Southwest Airlines (New York Stock Exchange: Luv), JetBlue Airways (JBLU), Alaska Airlines Group (ALK), Spirit Airlines (SAVE), Hawaiian Holdings (HA), and Frontier Group Holdings (ULCC).
Foreign airlines: International Consolidated Airlines Group (OTCPK:ICAGY), Deutsche Lufthansa (OTCQX:DLAKF), Latam Airlines Group (OTCPK:LTMAY), Copa Holdings (COP), Azul (AZUL), and Gol (GOL).
Freight carriers: Air Transport Services Group (ATSG), Forward Air Corp. (FWRD), Deutsche Post (OTCPK:DHLGY), FedEx (FDX), and United Parcel Service (UPS).