The International Air Transport Association (IATA) said recently that airline profits are set to fall sharply this year as the conflict involving Iran disrupts air traffic in the Middle East and increases fuel prices.
In its latest financial outlook released on June 7, IATA forecast that the global airline industry’s combined net profit will drop to $23 billion in 2026 from $45 billion in 2025, with the net profit margin falling from 4.2 % to 2.0%.
Airlines in the Middle East are expected to post an overall loss this year due to weaker demand and operational disruptions, while carriers in other regions are also likely to earn less than previously expected, the report said.
IATA also projected that aviation fuel costs will rise to $350 billion in 2026 from $252 billion in 2025.
“All airlines are feeling the impact of rapidly rising fuel prices,” IATA Director General Willie Walsh said. While carriers have tried to offset higher costs through fare increases and efficiency gains, those efforts are not enough to sustain last year’s level of profitability, he said.
IATA says Iran conflict to halve global airline profits
