Abstract
The article examines the financial aspects of the global aviation industry, which is gradually recovering from the impact of COVID-19. It also examines the impact of economic instability on passenger traffic and airlines' strategies for adapting to new market conditions. The role of government programmes and financial support in the recovery of the aviation industry and ways to optimise these measures are analysed. Estimates suggest that in 2023, passenger kilometres (RPK) will reach only 94.1% of the previous pre-crisis level. Air traffic volumes have already exceeded 2019 levels and are expected to remain high, supported by strong global trade. The industry's net losses are projected to decrease, turning into a net profit of $23.3 billion by early 2024. Airlines cut costs by 31% in 2021 compared to 2019, but as passenger traffic increases, they are facing rising costs again. Since 2019, global governments have spent $243 billion to support airlines. Strong demand for air travel continued to drive the market recovery in 2023, with growth of 36.9% year-on-year. Traffic reached 94.1% of the 2019 level. Seat supply slightly exceeded demand, resulting in a load factor of 82.3%. Different regions are experiencing the recovery in different ways. North America is showing the fastest recovery, with regional traffic growing and intercontinental routes resuming. Europe is recovering moderately, while Asia-Pacific, particularly China, is showing stable demand. The Middle East is facing obstacles due to limited domestic markets, making it difficult to fully recover. Latin America and Africa are facing internal challenges such as airline restructuring and slow passenger growth. While the industry continues to make progress, it is forecast that a full recovery to pre-pandemic levels may not be achieved until 2024. In addition to financial and operational challenges, airlines are focusing on sustainability initiatives. The transition to more fuel-efficient aircraft, investments in sustainable aviation fuel (SAF), and efforts to reduce carbon emissions are central to the industry's recovery. Governments and stakeholders are collaborating to meet climate targets, including net-zero emissions by 2050.
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