The International Air Transport Association (IATA) said on Sunday that a combined total net profit of global airlines is expected to be roughly halved this year as escalating geopolitical tensions and conflicts in the Middle East have kept pushing up jet fuel prices. The IATA predicted in a report that the total net profit of global airlines will drop from 45 billion U.S. dollars in 2025 to 23 billion U.S. dollars this year, with the net profit margin falling from 4.2 percent in 2025 to 2 percent.
Pummeled by weak demand and operational disruptions, airlines in the Middle East will incur overall losses, and airlines in other regions will also see lower-than-expected profitability.
The report also forecasts that aviation fuel costs are expected to rise from 252 billion U.S. dollars in 2025 to 350 billion U.S. dollars in 2026.
IATA Director General Willie Walsh said that the profits of all airlines worldwide have been impacted by the rapid rise in jet fuel prices. Although airlines are offsetting the additional costs by adjusting ticket prices and improving efficiency, this is not enough to sustain the previous year's profitability.
Combined net profit of global airlines expected to be halved amid Middle East tensions: IATA
