Since 2005, our annual analysis of the aviation value chain’s financial performance has helped highlight trends and developments in the sector. Our newest review, based on 2024 data, indicates a mixed year. Six of the 11 subsectors we track achieved positive economic profit, but the overall result was a clear downtick: The aviation value chain recorded a 2024 economic loss of roughly $14 billion—significantly larger than 2023’s $6 billion loss and worse than the industry’s average loss of $10 billion per year during the 2012 to 2019 prepandemic period.
Unpacking these outcomes reveals broader themes and diverging performance levels:
- In every subsector, we see value-creating parties, yet subsector-level results are dragged down by the magnitude of the worst performers’ losses.
- The airline sector’s loss was larger than in 2023 but remains smaller than during the 2012 to 2019 period—with a relatively high share of airlines again creating value.
- Airports’ overall performance was negative—despite airport traffic having now fully recovered to prepandemic levels—though performance differs significantly by region.
- Aircraft and engine manufacturers continue to face considerable challenges.
- Several segments that have historically been value creators once again achieved positive results after overcoming recent downturns.
Our measure of value creation is economic profit, defined as the difference between ROIC and the alternative return from equal-risk opportunities that investors can access.1 We analyze participants from across the value chain, including airlines; OEMs that produce aircraft and engines; aircraft lessors; air navigation service providers; jet fuel producers; airports; catering suppliers; ground services companies; maintenance, repair, and overhaul organizations; freight forwarders; and providers of global distribution systems and other travel technologies.
Below, we take a detailed look at the numbers.
Although air passenger traffic has fully recovered from the depths of the pandemic, the aviation value chain is facing some new headwinds—including geopolitical tensions. Economic profit performance varies significantly by sector, region, and business model type, but the value chain as a whole continues not to earn its cost of capital. Improved resilience and innovative ideas could help the industry navigate through a turbulent moment.
