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While the three major U.S. carriers -- Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), and American Airlines (NASDAQ:AAL) -- have had decent stock returns year to date, 2024 is shaping up to be even better.
The global airline industry can expect to earn net profit $25.7B in 2024, according to the International Air Transport Association (IATA). That compares to the $23.3B projected for 2023.
Operating profit is projected to reach $49.3B in 2024, an $8.6B increase from 2023.
In 2024, revenue is expected to reach a record $964B, a 7.6% year-over-year boost.
Around 4.7B people are expected to travel in 2024, a figure beating the previous record of 4.5B in 2019.
While the industry has mostly recovered in terms of passenger numbers reaching pre-pandemic levels, it has taken its toll. "It also appears that the pandemic has cost aviation about four years of growth," said IATA Director General Willie Walsh. "From 2024 the outlook indicates that we can expect more normal growth patterns for both passenger and cargo."
Cargo is also set for a modest increase in 2024, with 61M tons compared to the 58M tons projected for this year.
The price of jet fuel is expected to average $113.8/barrel for total fuel costs of $28B in 2024. That's 31% of operating costs for airlines who are projected to use 99B gallons of fuel in the new year.
Though many air travelers might disagree, IATA said that airfares have gotten cheaper. The average roundtrip airfare in 2023 is expected to be $254, below the $315 average fare seen in 2019 (figures are based on constant 2018 dollars).
Other U.S. carriers: Southwest Airlines (NYSE:LUV), JetBlue Airways (JBLU), Alaska Air Group (ALK), Spirit Airlines (SAVE), Hawaiian Holdings (HA), and Frontier Group Holdings (ULCC).
Foreign carriers: International Consolidated Airlines Group (OTCPK:ICAGY), Deutsche Lufthansa (OTCQX:DLAKF), Latam Airlines Group (OTCPK:LTMAY), Copa Holdings (CPA), Azul (AZUL), and Gol (GOL).
Cargo carriers: Air Transport Services Group (ATSG), Forward Air Corp. (FWRD), Deutsche Post (OTCPK:DHLGY), FedEx (FDX), and United Parcel Service (UPS).