KOTA KINABALU, 8 June 2023: A group of Filipino golfers led by Engr. Bart Borja arrived in Kota Kinabalu for a golfing holiday, flown in on a Falcon 900 business jet operated by Asian Air Safari.
The Sabah Flying Club and the Sabah Tourism Board welcomed the group following the 90-minute flight from Manila
Asian Air Safari is one of Manila’s oldest and most reputable aircraft charter companies, chartering fixed and rotary-wing aircraft and offering business and leisure flights in Asia Pacific, Europe and America.
Filipino pilot Captain Joy Roa of Asian Air Safari and Tengku Adlin and the Sabah Flying Club organised the first Borneo World Heritage Fly-in in 2005 – a milestone they hope to repeat soon.
By easing travel restrictions, Captain Joy hopes to further promote Sabah as a destination noted for its impressive beaches, ancient rainforests and nature reserves. It is also recognised for its world-class golf courses close to Sabah’s tourist destinations and the capital Kota Kinabalu.
SINGAPORE, 8 June 2023: The International Air Transport Association (IATA) announced continued strong passenger traffic demand in April against the backdrop of easing inflation and resurging consumer confidence.
Total traffic in April 2023 (measured in revenue passenger kilometres or RPKs) rose 45.8% compared to April 2022. Globally, traffic is now at 90.5% of pre-Covid levels. At 81.3%, the industry load factor was only 1.8 percentage points below the pre-pandemic level.
Domestic traffic for April rose 42.6% compared to the year-ago period and has now fully recovered, posting a 2.9% increase over the April 2019 results.
International traffic climbed 48.0% versus April 2022, with all markets recording healthy growth, with carriers in the Asia-Pacific region continuing to lead the recovery. International RPKs reached 83.6% of April 2019 levels.
“April continued the strong traffic trend in the 2023 first quarter. The easing of inflation and rising consumer confidence in most OECD countries, combined with declining jet fuel prices, suggests sustained strong air travel demand and moderating cost pressures,” said IATA director general Willie Walsh.
International Passenger Markets
Asia-Pacific airlines saw a192.7% increase inApril 2023 traffic compared to April 2022. Capacity climbed 145.3%, and the load factor increased by 13.2 percentage points to 81.6%.
European carriers had a 22.6% traffic rise versus April 2022. Capacity rose 16.0%, and load factor climbed 4.5 percentage points to 83.3%, the second highest among the regions.
Middle Eastern airlines posted a 38.0% traffic increase compared to April a year ago. Capacity climbed 27.8%, and the load factor rose 5.6 percentage points to 76.2%.
North American carriers’ traffic climbed 34.8% in April 2023 versus 2022. Capacity increased 26.5%, and the load factor rose 5.2 percentage points to 83.8%, the region’s highest. North American international traffic is fully recovered, with RPKs 0.4% above April 2019.
Latin American airlines saw a 25.8% traffic increase compared to the same month in 2022. April capacity climbed 26.4%, and the load factor slipped 0.4 percentage points to 83.1%.
African airlines’ traffic rose53.5% in April 2023 versus a year ago, the second highest among the regions. April capacity was up 50.0%, and the load factor climbed 1.6 percentage points to 69.8%, the region’s lowest.
SINGAPORE, 8 June 2023: The International Air Transport Association (IATA) called on governments to live up to longstanding international treaty obligations to publish timely and thorough aviation accident reports.
Safety is aviation’s highest priority. Failure to publish prompt and complete accident investigation reports deprives operators, equipment manufacturers, regulators, infrastructure providers and other concerned stakeholders of critical information that could make flying even safer.
“The accident investigation process is one of our most important learning tools when building global safety standards. But to learn from an accident, we need reports that are complete, accessible and timely,” said IATA’s director general Willie Walsh.
The requirements of the Convention of International Civil Aviation (Chicago Convention) Annex 13 are clear. States in charge of an accident investigation must:
Submit a preliminary report to the International Civil Aviation Organization (ICAO) within 30 days of the accident.
Publish the final report that is publicly available as soon as possible and within 12 months of the accident.
Publish interim statements annually should a final report not be possible within 12 months.
Only 96 of the 214 accident investigations during 2018-2022 conform with the requirements of the Chicago Convention. Just 31 reports were published within less than one year of the accident, with the majority (58) taking between one to three years. In addition to the fact that final reports regularly take more than a year, interim statements often provide little more than what was presented in the preliminary report.
“Over the past five years, fewer than half of the required accident reports meet the standards for thoroughness and timeliness. This is an inexcusable violation of requirements stated clearly in the Chicago Convention. “As an industry, we must raise our voice to governments in defence of the accident investigation process enshrined in Annex 13. And we count on ICAO to remind states that the publication of a complete accident report is not optional. It is an obligation under Annex 13 of the Chicago Convention,” said Walsh.
Cropped shot of a young gay couple bonding together and riding bicycles along the promenade during a day out
SINGAPORE, 8 JUNE 2023: Booking.com’s most extensive LGBTQ+ travel research spotlights the steady progress and recent setbacks for these communities when it comes to travel.
Released earlier this week, the research indicates that despite the travel industry’s growing recognition of the scope and variety of LGBTQ+ experiences, many travellers today still face enormous challenges.
The most extensive LGBTQ+ travel research from Booking.com to date spotlights the rising concerns surrounding personal safety and how active allyship in the travel industry contributes to increasing traveller confidence amongst APAC-based travellers.
Four in five (83%) LGBTQ+ travellers say they must consider their safety and well-being when picking a destination (up from 66% in 2022)
As opposed to being fearful or insecure, 78% feel that being LGBTQ+ makes them more confident as a traveller (up from 69% in 2022)
The study conducted amongst 11,555 LGBTQ+ travellers across 27 countries and territories worldwide shows that mainstream news – from issues around recent major world sporting and music events to celebrity and corporate sponsorships – has put discriminatory legislation and views in the spotlight for many, impacting considerations around vacation decisions.
Nearly three quarters (73%) of respondents admit that controversy in the news around attitudes, discrimination and violence towards people who identify as LGBTQ+ has had a big impact on their choice of destination, with LGBTQ+ travellers from Australia (84%), Hong Kong (82%) and the US (79%) indicating that they are the most cautious.
REAR VIEW OF PEOPLE ENJOYING MUSIC CONCERT.
A regressive revolution
This step backwards means that personal safety is now an increased point of discussion for LGBTQ+ people when planning travel, particularly among those who are transgender.
Worldwide, there are still 64 countries that criminalise same-sex relationships – including 11 where the death penalty can be imposed – meaning destinations like these are out of the question for most LGBTQ+ travellers, despite some playing host to major global events.
Nearly two-thirds (68%) of LGBTQ+ travellers say that some destinations are completely off-limits, following a disproportionately higher rate of discrimination and violence in these destinations.
Even after booking trips, travellers remain vigilant, with nearly half (49%) having cancelled a trip in the past year after seeing a destination not supporting those who identify as LGBTQ+.
Discrimination remains a key concern across the entire travel experience, with the majority (61%) of respondents having experienced discrimination when travelling.
Out of all LGBTQ+ travellers:
30% reveal that they have been subjected to stereotyping
One in five (22%) say they have been stared at, laughed at or verbally abused by other travellers.
A similar number (21%) share that they have faced the same but by locals at their travel destination
While 15% report that they have been threatened or intimidated by local law enforcement
While travelling can instil a sense of freedom and self-expression, many LGBTQ+ people still feel restricted. Over a third (34%) have felt that they need to change their behaviour to avoid judgement or awkward interactions with others (up from 24% in 2022), while 28% have felt they need to change their appearance to avoid the same (up from 18% in 2022).
Travel firms can be allies
There is a clear need for travel companies to show up as allies to implement policies that are inclusive and welcoming for LGBTQ+ travellers:
74% research travel brands and experiences before they travel to understand the role they play in supporting people who identify as LGBTQ+;
75% say they are more likely to book travel and experiences with brands that are LGBTQ+ owned than those who are not (up from 62% in 2022), with queer (73%) and pansexual (71%) travellers more likely to do so;
79% agree that they are more likely to favour airlines and brands with inclusive policies (e.g. gender neutral uniforms), rising to 86% for transmasculine and 83% for transfeminine travellers.
SINGAPORE, 8 June 2023: Singapore Airlines confirmed last week that it would offer free unlimited Wi-Fi access starting 1 July across all cabin classes.
There is just one condition you have to be a KrisFlyer member. If not, you can sign up online before the flight departure or onboard via the SIA digital content portal on your mobile device.
Photo credit: Singapore Airlines
Free unlimited Wi-Fi services are available on all aircraft except for the seven Boeing 737-800 NGs that are not Wi-Fi enabled.
However, Singapore Airlines is playing catch up on the free inflight Wi-Fi with quite a long list of airlines already offering the service since earlier this year.
JetBlue Airways JetBlue was the first US airline to provide free Wi-Fi to passengers across the entire fleet.
Delta Airlines Delta Air Lines followed the lead of JetBlue Airways to become the second US airline to offer free Wi-Fi on flights.
Emirates Airlines All Emirates passengers in every class of travel can enjoy some form of free WI-FI connectivity once they sign up for Emirates Skywards.
Japan Airlines Japan Airlines offers free in-flight Wi-Fi to all passengers on domestic flights and elite frequent flyer members on international flights.
Hainan Airlines Hainan Airlines, China, offers unlimited free Wi-Fi to passengers on board its Boeing 787-9 and Airbus A350 aircraft.
Air New Zealand Air New Zealand limits free onboard Wi-Fi to its Airbus 320neo fleet.
Qantas Qantas offers free Wi-Fi on all domestic Boeing 737 and Airbus A330 flights within Australia.
Virgin Australia Virgin Australia offers free Wi-Fi to passengers on domestic and trans-Tasman flights within Australia.
HO CHI MINH CITY, 8 June 2023: Vietjet will inaugurate a twice-weekly service on 16 June from Ho Chi Minh City (SGN) to Brisbane (BNE), the state capital of Queensland, Australia.
Brisbane becomes the third city in Australia served by Vietjet following the introduction of direct flights to Melbourne and Sydney earlier this year.
Photo credit: Vietjet. Australian PM applauds flight launch at a recent ceremony.
The new route serving Australia was announced during the recent official visit of Australian Prime Minister Anthony Albanese to mark the 50th anniversary of establishing Vietnamese-Australia diplomatic relations.
Albanese commented on the new flight during the ceremony: “We welcome the new flights to Australia, especially as Vietjet’s flight is the first to connect Vietnam with the country’s beautiful city of Brisbane.”
Using an Airbus A330, the new flight (VJ083), scheduled every Monday and Friday, will take off from Ho Chi Minh City’s Tan Son Nhat airport at 1050 (local time) and land in Brisbane at 2155. The return flight VJ084 will depart Brisbane Airport at 2330 (local time) and land in Ho Chi Minh City at 0510 the following day.
The outbound flight time will be eight hours and five minutes, while the return flight will take longer at eight hours and 40 minutes. A search on Trip.com flags the roundtrip fare in Eco class at around USD806 during June.
Vietjet also operates three flights weekly on Monday, Thursday and Saturday on the Ho Chi Minh City to Sydney route. On the Ho Chi Minh City to Melbourne route, it flies thrice weekly on Tuesday, Thursday and Saturday.
SINGAPORE, 6 JUNE 2023: Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (the “Company”), a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, published its 2022 Environmental, Social and Governance (ESG) report and Sustainability Accounting Standards Board (SASB) index as part of its global sustainability program, Sail & Sustain.
The report highlights the progress on NCLH’s ESG strategy and goals, including its efforts across the five pillars of Sail & Sustain: Reducing Environmental Impact, Sailing Safely, Strengthening our Communities, Empowering People and Operating with Integrity and Accountability.
Photo credit: NCLH Sustain & Sail report.
“We recognise the need for corporations to take action to help address global challenges, including climate change and sustainability, and at Norwegian Cruise Line Holdings, we are committed to doing our part by operating in a way that is socially responsible, respectful of the environment, and drives a positive impact on society,” said Harry Sommer, president and chief executive officer-elect of Norwegian Cruise Line Holdings Ltd. “Our Sail & Sustain program is key to moving our business forward– it goes hand-in-hand with delivering long-term value for the company and its stakeholders.”
The 2022 ESG report and additional information on NCLH’s global sustainability program, Sail & Sustain, can be found at http://www.nclhltd.com/sustainability.
“Over the past year, we continued to make great progress with new goals and initiatives across our Sail & Sustain focus areas as we help chart a path to a more sustainable future,” said Jessica John, vice president of ESG, Investor Relations, and Corporate Communications of Norwegian Cruise Line Holdings Ltd. “This year’s report highlights not only these advancements but also our commitment to increase and strengthen our disclosures each year to provide our stakeholders with critical transparency.”
John continued, “Whether through our plan to pursue net zero by 2050 or our efforts to support the communities we live in or visit worldwide, we’re set on finding innovative ways to Sail & Sustain.
Among the many ESG initiatives covered in the report, key highlights from the past year include:
Reducing Environmental Impact
• Ambitious climate action strategy and targets to reduce greenhouse gas (“GHG”) emissions: NCLH recently announced its revamped climate action strategy focused on efficiency, innovation and collaboration, along with ambitious short- and near-term emissions reduction targets that support the Company’s pursuit of net zero by 2050. The Company is now targeting a reduction in GHG intensity of 10% by 2026 and 25% by 2030, compared to a 2019 baseline with intensity measured per Capacity Day basis[1].
• Methanol-Ready newbuilds on order: Modified the final two Prima Class ships, expected to be delivered in 2027 and 2028, to accommodate the use of green methanol as an alternative fuel source in the future. While additional modifications will be needed to fully enable the use of methanol in addition to traditional marine fuel on these ships, this reinforces the NCLH’s commitment to decarbonisation.
• Focus on water stewardship: NCLH continues to improve water production rates while at the same time focusing on efforts to decrease consumption. Across its fleet, 90% of the freshwater used in 2022 was produced on board.
• Testing biodiesel fuels: Successfully tested small quantities of biodiesel blend B30, 70% marine gas oil and 30% biodiesel in four of its ships to date. By the end of 2023, NCLH anticipates that more than 20% of its fleet will have tested and operated on biodiesel blends.
• Investing in shore power: NCLH currently has 12 ships equipped with shore power capabilities. These ships connect to onshore electrical power grids to supply much of the power needed while docked when available. The Company continues to invest in expanding this technology and expects to have approximately 60% of its fleet shore-power enabled by year-end 2023 and approximately 70% by year-end 2025.
Sailing Safely
• Robust public health program to protect guests, crew and communities we visit: NCLH operates a comprehensive 24/7/365 public health and safety program, working closely with health authorities worldwide to implement and continuously improve policies and procedures that meet and, in many cases, exceed regulations. Crew members are also highly trained in the Company’s Outbreak Prevention and Response Plan, designed to mitigate and help prevent the spread of communicable diseases.
• Continuous public health training and education: With representatives from various government agencies and suppliers, NCLH hosts public health training through monthly online collaborations and annual in-person summits.
• Prioritised safety and security efforts: Utmost importance placed on safety and security at sea, with third-party audits conducted regularly to verify compliance. Each ship also has a resident Safety Officer, with experience ranging between 10 and 15 years in various roles at sea, and ship crews participate in regular safety training, exercises and drills on board and shoreside.
Empowering People
• Enhanced employee benefits demonstrate commitment to team members: NCLH expanded its suite of employee benefits by adding new Family Care Benefits, which provides fully paid maternity, paternity and adoption leave and family planning assistance for full-time U.S shoreside team members.
• Fostering an inclusive workforce where diverse backgrounds are represented and empowered: Across NCLH’s global shoreside workforce, 61% of team members are female, including 47% of managers and above. In addition, across the U.S. shoreside workforce, 67% of team members were under-represented minorities, including 54% of managers and above. In 2023, the Company also appointed three new Presidents to lead its brands, all three of whom were internal and ethnically or gender-diverse candidates, including the appointment of NCLH’s first female brand President, Andrea DeMarco, to lead Regent Seven Seas Cruises.
• Provided training and development opportunities across the workforce: NCLH team members logged over 800,000 hours of training and development across various roles and responsibilities, cementing the corporate philosophy to empower top talent and foster robust career development.
Strengthening Our Communities
• Ongoing corporate efforts to philanthropic contributions: NCLH contributed over $2 million in monetary and in-kind donations to nonprofit organisations worldwide. This included over $300,000 donated to aid in disaster and crisis relief, including Hurricane Ian recovery efforts in Southwest Florida.
• Honouring the connection between travel and education: Each year, Norwegian Cruise Line’s Giving Joy program recognises top educators for their unwavering commitment to inspiring students daily. In 2022, the Giving Joy program awarded 100 teachers across North America a free week-long cruise for two, valued at over $750,000 collectively, along with thousands of dollars in contributions from NCL and its partners to the schools of the top three grand prize winners.
• Offsetting Emissions and Supporting Communities through Carbon Offsets: NCLH has purchased 1.6 million carbon offsets, contributing to 14 projects globally, including in South Korea, Brazil and Turkey. The offsets purchased not only support the Company’s decarbonisation journey but also invested in cleaner energy sources and local job creation in these communities.
Operating with Integrity and Accountability
• Tied ESG metric to compensation: The Board of Directors Compensation Committee approved the inclusion of an ESG metric for the first time as part of the 2022 short-term incentive (“STI”) and once again approved the inclusion of an ESG metric in 2023. This metric is tried to the progress made on NCLH’s GHG reduction goals and builds greater accountability across the Company to accelerate the progress on ESG goals.
• Fostering a culture of ethical conduct: NCLH continuously emphasises the importance of ethical business practices and upholds all team members to a Code of Ethical Business Conduct, which team members must review and certify annually.
• Committed to maintaining a strong board with diverse experiences and backgrounds: NCLH welcomed a new board member in 2022, Zillah Byng-Thorne. Zillah brings her extensive technology sector, digital media and e-commerce experience to the board. Currently, the board is approximately 50% diverse, including 37.5% female and 12.5% under-represented minorities, with an average tenure of 6.6 years.
The full 2022 ESG report and additional information on NCLH’s global sustainability programme, Sail & Sustain, can be found at http://www.nclhltd.com/sustainability.
PATTAYA, 7 June 2023: Royal Cliff Hotels Group and AssetWise have forged a partnership to enhance Thailand’s role as a leading sports destination, especially for tennis.
Their first joint project focused on the successful hosting of the ITF Masters Tennis Championship held last November, which attracted around 200 players from across the globe, with the oldest player over 80 years old.
Now the two companies are expanding their partnership to organise multiple sports activities, including two signature international tennis events. The first project, the Junior Tennis Tournament, got underway from 3 to 4 June, while the second will be the repeat edition of the ITF Masters (18 to 24 November 2023). Both events are hosted by the resort’s Fitz Club, a luxury fitness centre. The International Tennis Federation has granted Royal Cliff the highest grade in Asia.
The two-sport projects are supported by relevant government agencies that appreciate the goals and contribution tennis events make to the country.
During a recent press conference, Royal Cliff’s CEO Vitanart Vathanakul welcomed guests, including AssetWise PLC deputy CEO Paneeta Malaivongs and Tecnifibre marketing director Wee Lim – the two anchor sponsors for the two tennis events.
Other guests included Pattaya City Council member Damrongkiat Phinitkarn, Tourism Authority of Thailand Pattaya Office director Anoma Vongyai and Eastern Meetings Incentives, Conventions and Exhibitions (MICE) marketing representative Rattanachai Sutthidechanai.
The AssetWise Junior Thailand Championship featured singles and doubles for players of all levels. Players earned points toward a national ranking. Over 200 young athletes participated in the tournament. Besides the competitive matches, the event included a tennis clinic by the coaches of Fitz Club.
ITF MT-700 Masters Championship attracts over 200 players worldwide who compete in singles, doubles and mixed doubles. The event is open to players 35 to 75 years old. ITF MT-700 Masters Championship is considered a crucial tournament on the ITF World Tennis Masters Tour calendar and offers an opportunity to earn points toward a global ranking. Now that all travel restrictions have been lifted, over 250 players should join the tournament in November.
“We are thrilled to host the two tournaments and provide a competitive platform for young and adult tennis players to display their skills,” said Royal Cliff Hotels Group CEO Vitanart. “Our goal is to make Pattaya a leading family and sports destination and to welcome players worldwide while at the same time promoting physical and mental health, building new friendships and creating a positive difference in this world-famous resort city. I want to thank our two wonderful sponsors, AssetWise and Tecnifibre. Without their support, we would not have been able to organise this amazing event.”
“At Assetwise, we are thrilled to announce our renewed partnership with Royal Cliff to support projects that perfectly align with our brand values and promote the essence of an active lifestyle, passion, and happiness. Together, we aim to elevate Thailand’s reputation as a premier sports destination and create remarkable experiences for sports enthusiasts worldwide”, said AssetWise deputy CEO Paneeta Malaivongs.
ATP players, including Mikhail Youzhny, Denis Istomin and Nikolay Davydenko, have visited the Fitz Club – Racquets, Health & Fitness and used its facilities for tennis camps. Tennis courts are of the same standard as the Australian Open, so top players get used to the conditions and prepare for the upcoming grand slam tournament.
Renowned as the leading luxury sports centre in Thailand’s Eastern Seaboard region, Fitz Club is fully equipped with state-of-the-art facilities, including excellent cardio machines, seven-floodlit tennis courts, two air-conditioned squash courts, table tennis, a swimming pool, and sauna & steam rooms.
For more information, contact the Fitz Club team at email: [email protected].
BANGKOK, 5 June 2023: Centara Grand Beach Resort & Villas Hua Hin offers travellers one free night for every night booked and an array of exclusive perks during its five-day “Centenary Flash Sale”.
From 6to 10 June 2023, guests who book selected luxury suites and private pool villas can take advantage of unbeatable Stay-2-Pay-1 or Stay-4-Pay-2 packages for bookings until 30 September 2023.
In celebration of the 100th anniversary of Centara Grand Beach Resort & Villas Hua Hin’s breathtaking heritage hotel, guests will be given a second consecutive night free with every one night booked in deluxe suites and Villa one bedroom with a private pool with a maximum four-night stay. Also included in the Centenary Flash Sale is daily breakfast for two, complimentary stays for up to two children under 12 years, and access to The Club, which includes meals, unlimited WiFi, two complimentary items of laundry per room per day, and more.
With a rich history dating back to the early 1920s, Centara Grand Beach Resort & Villas Hua Hin is a sought-after beachfront destination nestled around a wide expanse of topiary gardens just a short drive from Bangkok. During their stay, guests can discover the region’s recreational activities as well as lively local markets and shopping centres, savour freshly caught seafood prepared with Thai recipes or indulge in a classic concoction by the seashore, and enjoy an artful blend of tradition and modernity by the peaceful waters that make Centara Grand Hua Hin the perfect place to relax and unwind.
With the Centenary Flash Sale only available for five days (6 – 10 June 2023), guests looking to plan their next luxury seaside escape and take advantage of free nights and all the perks are encouraged to book as soon as possible. For more details on this limited-time offer, visit https://www.centarahotelsresorts.com/centaragrand/chbr/centenary-flash-sale
SINGAPORE, 7 June 2023: The International Air Transport Association (IATA) announced an expected strengthening of airline industry profitability in an upgrade of its outlook for 2023 presented at the IATA AGM held in Istanbul earlier this week
Outlook Highlights
Airline industry net profits are expected to reach USD9.8 billion in 2023 (1.2% net profit margin), more than double the previous forecast of USD4.7 billion (December 2022).
Airline industry operating profits are expected to reach USD22.4 billion in 2023, much improved over the December forecast of a USD3.2 billion operating profit. It is also more than double the USD10.1 billion operating profit estimated for 2022.
Some 4.35 billion people are expected to travel in 2023, closing in on the 4.54 billion who flew in 2019.
Cargo volumes are expected to be 57.8 million tonnes, which has slipped below the 61.5 million tonnes carried in 2019 with a sharp slowing of international trade volumes.
Total revenues are expected to grow 9.7% yearly to USD803 billion. This is the first time industry revenues will top the USD800 billion mark since 2019 (USD838 billion). Expense growth is expected to be contained to an 8.1% annual increase.
“Airline financial performance in 2023 is beating expectations. Stronger profitability is supported by several positive developments. China lifted COVID-19 restrictions earlier in the year than anticipated. Cargo revenues remain above pre-pandemic levels even though volumes have not. And, on the cost side, there is some relief. Jet fuel prices, although still high, have moderated over the year’s first half,” said IATA’s director general Willie Walsh.
Even with a 1.2% net profit margin, the return to net profitability is a major achievement. First, it was achieved at a time of significant economic uncertainties. And second, it follows the deepest losses in aviation’s history (USD183.3 billion of net losses for 2020-2022 (inclusive) for an average net profit margin of -11.3%). It should be noted that the airline industry entered the Covid-19 crisis at the end of a historic profit streak that saw an average net profit margin of 4.2% for the 2015-2019 period.
“Economic uncertainties have not dampened the desire to travel, even as ticket prices absorbed elevated fuel costs. After deep Covid-19 losses, even a net profit margin of 1.2% is something to celebrate! But with airlines making $2.25 per passenger on average, repairing damaged balance sheets and providing investors with sustainable returns on their capital will continue to be challenging for many airlines,” said Walsh.
Outlook Drivers
Revenues are rising (9.7%) faster than expenses (8.1%), strengthening profitability.
Revenue: Industry revenues are expected to reach USD803 billion in 2023 (+9.7% on 2022 and -4.1% on 2019). An inventory of 34.4 million flights is expected to be available in 2023 (+24.4% on 2022, -11.5% on 2019).
Efficiency levels are high, with an expected average passenger load factor of 80.9% for 2023. That is very near the 2019 record performance of 82.6%.
IATA’s May 2023 passenger polling data supports the optimistic outlook, with 41% of travellers indicating they expect to travel more in the next 12 months than in the previous year, and 49% expect to undertake the same level of travel. Moreover, 77% of respondents indicated they were already travelling as much or more than they did pre-pandemic.
Risks
The economic and geopolitical environment presents several risks to the outlook. With just USD22.4 billion of operating profit (2.8%) standing between USD803 billion in revenues and USD781 billion in expenses, industry profitability is fragile. It could be affected (positively or negatively) by several factors. In particular, consideration should be given to:
Inflation-fighting measures are maturing at different rates in different markets. Central banks are calibrating the best levels for interest rates to have a maximum cooling effect on inflation while avoiding tipping economies into recession. An early or lower end-to-rate rise could stimulate markets for a stronger year-end outlook. Equally, the risk of recession remains. The industry’s outlook could shift negatively if a recession leads to job losses.
War in Ukraine is not having a major impact on profitability for most airlines. A currently unanticipated peace could carry the potential for cost improvements with lower oil prices and efficiencies from removing or easing airspace restrictions. An escalation, however, would likely have negative prospects for global aviation. Already broader geopolitical tensions are weighing upon international trade, and any escalation of such tensions represents a downside to the industry outlook.
