The global airlines sector is set to continue its growth in 2024 with IATA expecting this year's revenue passenger kilometres to grow by 9%, reaching 105% of 2019 levels. This shows a more steady growth in comparison to the sharp rise post-pandemic for the industry. The industry had shown a 38% growth in 2023 and 65% in 2022 as business leisure travel remained strong and fuel prices normalised.
Growth is expected to further normalise to 5-7% going forward.
However, some challenges are likely to continue to affect the industry in 2024. These challenges include a struggling cargo segment, a relatively weaker macroeconomic environment (with growth expected to remain subdued at less than 1% across all major economies), and capacity growth constraints in relation to supply chain issues at aircraft manufacturers and pilot shortages.
"Despite these challenges, the sector is likely to show the same resilience as in 2023, as consumers continue prioritising travel and business travel recovering," said Diversified Industries assistant vice president Rohit Kumar. “Potential headwinds, not in our base case, include a significant economic downturn/recession, and potential escalation in geopolitical tensions that could adversely affect global air travel and/or fuel prices.