Singapore: The aircraft industry has experienced mixed fortunes over the past ten years. According to the International Air Transport Association( IATA ), due to a boom in travel and low oil prices, the industry experienced an average net profit margin of about 4.2 percent from 2015 to 2019.
The international aviation business took a nosedive almost immediately after the pandemic hit. Governments enacted unprecedented action restrictions to contain the virus, which abruptly stopped international travel. From 2020 to 2022, carriers lost$ 183.3 billion as a result of this unrest, which resulted in astounding losses.
However, following the crisis, the industry is once more booming. IATA anticipates that airlines will record net profits of US$ 9.8 billion in 2023, and while the anticipated 1.2 % net profit margin is far below the report set prior to the pandemic, it still meets industry standards.
Singapore Airlines( SIA ) has followed a similar path closer to home. It suffered the worst loss in its background and received government assistance during the pandemic.
However, following the pandemic, its customers and income have improved. In fact, it made a record quarterly net profit of Entropy$ 734 million( US$ 540 million ) in the most recent quarter, in part because of the high demand for air travel during the mid-year college breaks.
Not just SIA experienced a rise in traveling. With 10.9 billion riyals( US$ 2.9 billion ) for the fiscal year that ended in March, Dubai’s Emirates Group had its most successful time. As summer guests crammed the planes, Delta Air Lines made a report US$ 1.8 billion earnings for the third ended June.
Despite a slow reopening, Hong Kong’s Cathay Pacific made its first half-year profit since the pandemic in the first six months of 2023, earning HK$ 4.26 billion( US$ 543 million ). After a sharp increase in inbound go in the third quarter, Nippon Airways also achieved its first full-year revenue of 89.4 billion( US$ 606 million ) in FY2022.