Russia to rejoin Ukraine grain exports deal ECONOMY Ones

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AHMAD ALZABIN CEO, AVIATION LEASE AND FINANCE

A standoff that threatened to reignite a worldwide food crisis has been resolved, and grain shipments from Ukraine will restart, following Russia's decision to rejoin an UN-backed campaign to permit exports via the Black Sea.

Recep Tayyip Erdogan, the president of Turkey, claimed that Sergei Shoigu, the Russian defence minister, had called his Turkish counterpart to announce Moscow's re-engagement.

In a speech to his security council,

Russian President Vladimir Putin stated that even if the most recent agreement failed, Russia would still provide "the volume of grain that was provided from Ukraine to the poorest countries."

According to Erdogan, the following grain shipments will go to Sudan, Djibouti, and Somalia. The Turkish President assisted in arranging the initial grain transaction in July and has kept close ties with Putin ever since Moscow began its full-scale assault in February.

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DORIS HSU CEO, GLOBALWAFERS

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The total airline sector revenue is predicted to increase by 43.6% in 2023

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Aviation sector to return to profit in 2023?

According to the International Air Transport Association (IATA), airlines are expected to return to profitability in 2023, after cutting losses brought on by the COVID-19 pandemic on their companies in 2022.

Airlines are predicted to report a small net profit of $4.7 billion - a net profit margin of 0.6%. It is the first profit since 2019 when industry net profits were $26.4 billion (3.1% net profit margin).

In contrast to IATA's June 2022 projection, which predicted a $9.7 billion loss for 2022, the industry is now expecting net losses of $6.9 billion in 2022. This is much better than the losses of $42.0 billion and $137.7 billion that were reported in 2021 and 2020 respectively.

Airlines have exhibited resilience throughout the COVID-19 pandemic. The financial recovery will start to take shape as we move ahead to 2023 with the first industry profit since 2019. This will be considered a great achievement given the severity of the financial and economic harm brought on by the government-imposed pandemic restrictions.

However, a $4.7 billion profit on $779 billion in industry revenues also shows that there is still a lot of work to be done to put the global sector on a sound financial foundation. Many airlines are successful enough to draw the funding required to advance the sector as it decarbonizes. But many others are struggling for a variety of reasons. These include onerous regulation, exorbitant costs, inconsistent government policies, poor infrastructure and a value chain where the gains of linking the world are not equally divided, stated Willie Walsh, IATA's Director General.

In the face of rising fuel prices, improved prospects for 2022 stem largely from strengthened yields and strong cost-control methods. The increase in passenger yields is estimated to be 8.4%, up from the 5.6% predicted in June. Passenger revenue is anticipated to increase to $438 billion (from $239 billion in 2021) thanks to this strength. Air cargo revenues were crucial in reducing losses, with estimated revenues of $201.4 billion. In comparison to 2021, the total airline sector revenue is predicted to increase by 43.6%.