Airline operators face frequent challenges, from weather events to shifting travel habits to economic uncertainty. Creating value under such circumstances can be a tall order. Many carriers, however, performed well in 2023, and 2024 data indicate another decent year, explain Partner Steve Saxon and coauthors. The number of airlines that generated value reached historic highs in 2023 and 2024, at 46 percent and 41 percent of airlines analyzed, respectively. Airlines that created value were defined as those whose return on invested capital was greater than their weighted average cost of capital.
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A line chart shows the share of global airline carriers creating value from 1998 to 2024. The share of global carriers creating value starts at ~18% in 1996 and gets as low as 15% by 2001. It fluctuates between 15% and 25% from 2000 to 2019. In 2020, during the pandemic, the share of global carriers creating value falls to its lowest point, below 10%. By 2023, the share of global carriers creating value peaks at over 45% before dropping slightly to ~40% by 2024.
Note: This image description was completed with the assistance of Writer, a gen AI tool.
Source: Airfinance Global; S&P Capital IQ; McKinsey analysis of company reports; McKinsey aviation value chain model.
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To read the article, see “Can the global airline industry continue its climb?,” May 22, 2025.