Global Airlines 2024 Outlook: Cruising Through a Challenging Environment, But Watch Out for the Headwinds
TransportationSummary
The global airlines sector is expected to continue its growth trajectory in 2024, albeit at a more normalized pace (high single-digit growth) than in 2022–23, as business and leisure travel remain strong and fuel prices normalize. The sector, though, is likely to face some challenges, including:
-- A relatively weaker macroeconomic environment with growth expected to remain subdued at less than 1% across all major economies;
-- Capacity growth constraints in relation to supply chain issues at aircraft manufacturers and pilot shortages; and
-- A struggling cargo segment.
“Despite these challenges, the sector is likely to show the same resilience as in 2023, as consumers continue prioritizing travel and business travel recovering” said Rohit Kumar, Assistant Vice President of Diversified Industries. “Potential headwinds, not in our base case, include a significant economic downturn/recession, and potential escalation in geopolitical tensions that could adversely affect global air travel and/or fuel prices.”