https://www.bloomberg.com/news/articles/2023-02-21/airlines-turn-market-darlings-as-covid-forces-financial-clean-up
The International Civil Aviation Organization expects passenger demand to recover to pre-Covid levels on most routes this quarter and then to about 3 per cent higher than 2019 levels by year-end.
Carriers will generate profits of US$4.7 billion in 2023, according to the International Air Transport Association. While that’s a fraction of the US$26.4 billion airlines made in 2019, key financial ratios indicate the industry is on its soundest footing in years.
What’s different now is the huge gulf between limited available seats on aircraft and the public’s strong appetite for travel, which is allowing airlines to supercharge fares.
“The supply-demand dynamics are as different than they’ve ever been in my career,” United Airlines Holdings chief executive officer Scott Kirby said on an earnings call last month. “Every data point keeps demonstrating it over and over again. I think margins across the board are going to be higher.”
Reporting record fourth-quarter revenue last month, American Airlines Group CEO Robert Isom said navigating the pandemic had made the carrier more efficient — its fleet is simpler and the network focuses on the most profitable flights. “This is our best-ever post-holiday booking period,” he said. “We expect the strong demand environment to continue in 2023.”