20 Safest Airlines in the World for 2024

Aima Zaheer

Sun, Jan 14, 2024, 2:08 PM 12 min read

The global airline industry is an integral part of the global economy as it facilitates international trade and tourism. Currently, more than 5,000 airlines have over 23,000 aircraft, serving over 41,000 airports worldwide, as per the International Civil Aviation Organization (ICAO) and the Central Intelligence Agency (CIA). Airlines are divided into three categories, namely traditional carriers, low-cost carriers, and cargo. Each category has its own target market and business model. Major players within the global airline industry include American Airlines Group (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), and United Airlines Holdings (NASDAQ:UAL).

According to a recent report by the International Air Transport Association (IATA), the estimated revenue for the international airline industry in 2023 was $896 billion, with forecasted 2024 revenue being $964 billion. These figures translate into a year-on-year change of 21.7% and 7.6% for 2023 and 2024, respectively. The estimated profit margin for 2023 is 2.6%, while the 2024 forecasted profit margin for the airline industry is 2.7%. This profitability comes three years after the record net loss of approximately $140 billion in 2020 due to COVID-19. The main reason for a positive outlook in 2023 and 2024 is the resurgence of demand post-pandemic, resulting in a rise in both passenger and cargo transport. Except for Asia-Pacific, all regions are expected to reach or surpass pre-COVID levels in passenger traffic in 2024. However, as the pent-up demand from the pandemic decreases, the sharp growth in revenue passenger kilometers (RPK) witnessed in 2022-2023 will also normalize in 2024. The airline industry is anticipated to experience a positive but relatively narrow profitability margin in 2024 due to normalized growth rates and rising expenses. However, this margin is notably slimmer compared to industries such as technology or oil and gas. The industry’s profitability is also quite vulnerable to uncertainties due to economic and geopolitical factors. These include high interest rates, the war in Ukraine and in the Middle East, supply-chain issues at aircraft manufacturers’ end, staff shortages, and the rising costs of compliance. The industry will have to navigate through the uncertainties caused by these factors for better financial health.

Alaska Airlines Incident Spurs Regulatory Action

The airline industry's safety standards have been called into question following a few recent incidents. On January 12, the US aviation regulator announced an indefinite extension of the grounding of Boeing Co's (NYSE:BA) 737 MAX 9 airplanes. This decision was made to conduct additional safety checks following an incident involving Alaska Airlines on January 5, where a cabin panel blew off during a flight. The two major US carriers utilizing the affected aircraft, Alaska Airlines and United Airlines, canceled many flights in the past week following the grounding. FAA Administrator Whitaker shared that he views the issues with the MAX 9 as a manufacturing problem rather than a design flaw. Highlighting a history of production challenges at Boeing Co. (NYSE:BA), he commented, "Whatever's happening isn't fixing the problem and requires an extensive review."

Meanwhile, Boeing Co. (NYSE:BA) expressed agreement with the decision of the Federal Aviation Administration (FAA) to ground the 737 Max 9 planes for inspection. The grounding has affected approximately 171 aircraft. Boeing has taken steps to provide instructions to airlines on how to conduct inspections on these planes. Following the Alaska Airlines incident, a domestic flight operated by Japan's All Nippon Airways also had to return to its departure airport on January 14 after a crack was discovered on the cockpit window of the Boeing 737-800 aircraft while in midair. Boeing Co (NYSE:BA) shares experienced a 2.2% decline in closing on Friday and have witnessed a nearly 12% drop since the incident on January 5. The company is already dealing with a financial crisis, having reported a net loss of $2.2 billion for the initial nine months of 2023. You can also check out the 10 Most Dangerous Airlines In The World here.

Fortunately, these incidents did not lead to any fatalities among the passengers. Over the last five years, there has been a notable decrease in the number of fatal accidents for both commercial and passenger airlines combined, dropping from 11 in 2013 to an annual average of seven. According to Aviation Safety, 2023 has been the second safest year for airlines on record, with only five fatal crashes reported, resulting in 105 deaths. Emirates and Finnair are amongst the safest airlines in the world for 2024. Better aircraft engineering, new technology, and more comprehensive training are among the factors that have helped improve airline safety over the years.

Our Methodology

To shortlist the 20 safest airlines in the world for 2024, we have referred to sources like Airlineratings and Airfleets.net. The rankings below take into account numerous factors, such as air crashes over the past ten years, serious incidents over the last two years, the status of industry or government audits, average fleet age, and staff training. Incidents such as bird strikes, weather diversions, and turbulence have not been considered, as airlines have little control over these incidents. We have provided airline audit status, the number of fatal air crashes, and the average fleet age of each airline for ease of comparison.

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