Skip to content Skip to Search
Skip navigation

Profit of Middle East carriers to soar 43% to $2bn in 2023

Middle East carrier profit Etihad Airways
The capacity of Middle East airlines is likely to increase by 15.9 percent in 2023, says Iata

The net profit of Middle East carriers is expected to rise 42.8 percent to $2 billion in 2023, from $1.4 billion in 2022, on higher passenger revenue and capacity, International Air Transport Association (Iata) said in a new report.

Revenue passenger kilometres is forecast to grow by 20.8 percent this year compared to a drop of 7 percent in 2019. Similarly, the capacity of regional airlines is likely to increase by 15.9 percent in 2023 from a decline of 13 percent in 2019.  

With Covid-19 restrictions now removed in all major markets, the industry is likely to reach 87.8 percent of 2019 levels of revenue passenger kilometres for the year, as passenger traffic strengthens this year, the report said.

The global airline industry’s net profits are expected to reach $9.8 billion in 2023, more than double its forecast of $4.7 billion in December 2022, Iata said.

“Airline financial performance in 2023 is beating expectations. The pandemic years are behind us and borders are open as normal,” Willie Walsh, director general of Iata, said

Revenue is anticipated to rise by 9.7 percent to $803 billion, nearing 2019’s pre-pandemic level of $838 billion.

“Achieving profitability at an industry level after the depths of the Covid-19 crisis opens up much potential for airlines to reward investors, fund sustainability, and invest in efficiencies to connect the world even more effectively,” said Walsh.

He called on governments to keep their focus on initiatives that will strengthen safe, sustainable, efficient, and profitable connectivity.

Iata’s 2023 priorities include sustainable aviation fuel production incentives to accelerate progress toward net zero carbon emissions, ensuring the integrity of the CO2 emissions offset scheme Corsia, eliminating inefficiencies in air traffic management and applying global standards consistently.

Dubai's Emirates airline last month recorded the most profitable 12 months in its 38-year history. The carrier reported a profit of AED10.6 billion ($2.9 billion) over the last 12 months, a turnaround from a loss of AED3.9 billion in the previous financial year.

The return to the black was a result of revenue rising 81 percent year-on-year to AED107.4 billion as the airline’s capacity increased 32 percent. Its profit margin was 9.9 percent.

Emirates carried 43.6 million passengers in the last year, a year-on-year increase of 123 percent.

Latest articles

People, Person, Adult

ADQ unveils plans for Ras El Hekma Egyptian project

Abu Dhabi sovereign wealth fund ADQ has revealed the plans for the Ras El Hekma mega development, which will contribute $25 billion annually to Egypt’s GDP and create 750,000 jobs both directly and indirectly. The sovereign fund has appointed Abu Dhabi-listed Modon Holding as the master developer for the 170 million sq m project. Modon […]

Advertisement, Person, Clothing

Almarai Q3 2024 profit rises 17% amid revenue growth

Almarai, the Middle East’s largest dairy farm, said third-quarter 2024 net profit rose 17 percent to SAR570 million ($152 million), compared to SAR486 million a year ago. The profit growth was driven by a 9 percent year-on-year increase in revenue to SAR5.2 billion amid growth in all product categories across all geographies, except Egypt. Despite […]

Clothing, Footwear, Shoe

PIF explores raising stakes in Japanese gaming companies 

Saudi Arabia’s Public Investment Fund (PIF) is exploring increasing its stakes in Japanese gaming companies to develop the kingdom as a global gaming hub. “There are always opportunities,” Prince Faisal bin Bandar Al Saud, vice chairman of Savvy Games Group told Kyodo News, a Japanese news agency. PIF owns 8.6 percent of Nintendo, initially acquiring […]

The ambitious plans to increase Abu Dhabi's GDP include investing in and encouraging non-oil sectors such as manufacturing, healthcare and bioscience

Abu Dhabi to announce new 2045 strategy for GDP growth

Abu Dhabi will soon launch a new economic strategy aimed at tripling its GDP by 2045, sources told AGBI. The strategy, expected to be released by the end of the year, outlines a broad transformation that seeks to further diversify the emirate’s economy, significantly reduce its reliance on oil, and position Abu Dhabi as a […]