Global airline executives gathered in Rio de Janeiro for their annual summit on Saturday amid growing pressure on the industry's post-pandemic recovery, as soaring fuel prices and airspace disruptions linked to the Iran conflict force carriers to balance higher fares with reduced capacity.
The June 6-8 annual meeting of the International Air Transport Association (IATA) comes as that fuel shock collides with another problem airlines cannot quickly fix: a shortage of new aircraft.
Boeing and Airbus delivery delays have forced many carriers to keep older, less fuel-efficient jets in service for longer, raising maintenance and fuel bills just as oil prices have climbed.
IATA, which represents more than 370 airlines accounting for about 85% of global air traffic, had forecast a record $41 billion in net profit this year for the industry before the war. Industry executives and analysts expect that outlook to be lowered at the meeting.
A Deloitte survey of 21 global airline CEOs published this week found that fuel price volatility and inflation sit at the top of the industry's risk agenda, pushing carriers to focus more heavily on cost control and financial health.
