Photo sourced from Buckinghamshire New University.

Global Airline Revenues Have Soared 70%: Cirium

LONDON – According to a report published by Cirium, global airline revenues have soared 70% in the first half of this year.

O’Toole: $15bn Loss is Recovery…


Photo sourced from Conde Nast Traveler.

Kevin O’Toole, the VP of Strategy at Cirium, had this to say:

“It is a testament to these extraordinary times that a loss of nearly $15 billion for the airline industry in the first half of 2022 ranks as a positive sign of recovery.”

“Yet positive it clearly is, at least in contrast to the loss of almost $70 billion in 2020 and over $30 billion for the same period a year ago.”

“Global revenues soared by 70%, bringing the total within 20% of the 2019 record, with almost half coming from the North American carriers alone as they marked up a 5% increase over pre-pandemic levels and returned to a modest operating profit.”

The Numbers…


Photo sourced from Mapped.

The report highlighted revenues, operating profits, and net results for over 100 carriers that the analytics firm tracks.

Revenue had increased by 70% to $289bn, which is an improvement from 2021’s figures, where $170bn was made, and in 2020 when $173bn was made.

This does represent a significant recovery, as the industry aims to achieve the pre-pandemic figure of $348bn recorded in 2019.

Operating results for 2022 were -$13.7bn, which is an improvement from -$27.7bn in 2021 and -$56.6bn in 2020.

For the pre-pandemic figures, there is still a long way to go, as pre-pandemic figures posted a profit of $18.7bn.

As for the net result, this was recorded at -$14.9bn, which is a major improvement compared to the -$32.5bn lost in 2021 and -$69.5bn lost in 2020.

The industry needs to exceed $10bn in profits if it is to achieve pre-pandemic levels on that front.

Delta Top Of The Charts For Revenue…


Photo Credit: Kyle Hayes/AviationSource

The report also highlighted that Delta Air Lines is in the #1 spot for Top 25 Airline Groups by Revenue for Jan-Jun 2022.

2022 saw Delta accrue $23,172m in revenue, which represents a 105% increase compared to the same period last year and is 1% higher than 2019’s numbers.

The carrier’s operating result for 2022 was $736 million, with its net result being -$205 million.

Photo Credit: Harrison Rowe/AviationSource

In the #2 spot was FedEx, which for a cargo carrier, was hardly surprising during the COVID-19 pandemic as the cargo market boomed.

The carrier posted revenues of $23,072m, which is an improvement of eight percent compared to the same period last year, and 23% better than 2019 levels.

Its operating result was $1,599m, and its net result was $1,402m, which highlights a strong profit made by the carrier.

Overall…


Photo sourced from UNWTO.

Based on Cirium’s findings, it’s clear that we are well into the stages of recovery, and a $15bn loss across the 100 carriers monitored is actually a good thing.

Compared to 2020 and 2021’s figures, it’s a major improvement, whereby in 2023-24, we could see profitability across the sector.

Despite a global recession looming, those in the industry can take solace in the fact that things aren’t as bad as they were two years ago.

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