IATA has announced that 28 new airlines started operations in 2024, while 19 airlines ceased operations. This marked the lowest number in a decade for both new entrants and exits, which might signal a temporary market stabilisation, IATA said.
“Looking back at 2024 and the past decade, Europe and Asia-Pacific emerged as the leading regions for new airline launches. This can be explained by market liberalisation and robust economic growth respectively. In contrast, North America saw a relatively small number of new operators, reflecting its status as a mature and consolidated market,” IATA said.
The number of new airlines starting operations has been on a downward trend since a peak in 2021, a year marked by numerous post-COVID reorganisations that temporarily boosted these figures.
The low number of new airline entrants in 2024 can be attributed to a combination of economic, supply chain and geopolitical challenges. Economic uncertainty played a major role, as global inflation, rising operating costs, and borrowing costs have made it challenging for new airlines to secure the necessary funding and resources to launch operations.
Additionally, ongoing supply chain disruptions continued to affect the availability of aircraft and parts, leading to delays and increasing costs for new entrants trying to enter the market.
“Conflicts in regions such as the Middle East, Africa and Eastern Europe have created an unstable environment for air travel. Furthermore, stricter regulatory requirements have added to new entrants' operational complexities and costs,” IATA added.
The number of airlines that have ceased operations has also declined. Last year, seven low-cost carriers, 11 traditional airlines and one cargo airline halted operations.
Only three cases involved transformation and mergers, while the rest had to exit the market due to financial difficulties and intense competition.
