The aviation sector will be at risk if the current economic situation persists, Akbar Al-Baker, CEO of Qatar Airways, warned on Wednesday.
Al-Baker was speaking at a conference hosted by the International Air Transport Association in Doha (IATA).
According to Qatar Airways, with the aviation sector recovering from one of the largest financial crises in history, the numbers point to a rapid recovery from the pandemic’s ramifications, particularly after governments lifted travel restrictions imposed over the last two years. As a result, the aviation sector’s losses are expected to fall to $9.7 billion this year, down from around $180 billion in the two years 2020-2021.
The company explained that the lifting of restrictions in most countries increased travel demand, and the aviation sector is expected to return to pre-pandemic levels in 2024, with the possibility of turning a profit in 2023 due to pent-up demand for travel.
Furthermore, Qatar Airways highlighted that airline debt levels rose as companies were forced to borrow to survive the crisis, causing financial departments in the industry to face numerous challenges at a time when attempts have been made to meet commitments of achieving net zero carbon emissions by 2050.
In the same context, Willie Walsh, Director General of IATA, said that high oil prices will be reflected in airline ticket prices.
Walsh stated that hydrogen planes will not be seen on commercial airlines until 2040 or 2050.
Meanwhile, Walsh noted that China’s zero Covid policy made Hong Kong lose its status as a global aviation hub.
