June 7, 2026
By Dickson Omobola
International Air Transport Association, IATA, has forecast that airline profitability will halve in 2026 compared to 2025, fingering war-related disruptions in the Middle East and rising fuel costs as major factors.
IATA, in its latest financial outlook for the global airline industry, said profits are expected to decline from $45 billion in 2025 to $23 billion in 2026.
According to the outlook, airlines in the Middle East are expected to collectively slip into losses due to weak demand and operational disruptions, while carriers in other regions are projected to remain profitable, but at lower levels.
