AzmiLaw - ESG Issues Plaguing the Airline Industry

Airline industry, having faced severe repercussions from the COVID-19 pandemic due to widespread border closures, is now poised for a notable financial recovery. This industry net profits are expected to reach $9.8 billion in 2023 which is more than double the previous forecast of $4.7 billion in December 2022 as reported by the International Air Transport Association (IATA).

While the industry aims for a swift recovery, it confronts formidable challenges from environmental, social, and governance (ESG) perspectives. Scientists have issued a dire “final warning” on the climate crisis, emphasizing the urgent need for decisive action to mitigate the irreversible damage caused by escalating greenhouse gas (GHG) emissions. Despite the economic allure of the aviation sector, there is a pressing need to prioritize ESG considerations to prevent further financial losses, particularly in the face of potential environmental catastrophes.

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Contact the authors or more information - Norhisham Abd Bahrin and Muhammad Nabil Abdul Razak.