Revenues are forecast to rise strongly and passenger traffic to hit new records, yet the global airline industry is seeing profits squeezed by an Iran war-driven jet fuel price shock, according to the industry's latest outlook.

Rising jet fuel costs could trigger more airline bankruptcies and mergers, especially among struggling budget carriers.

The global airline industry has significantly lowered its 2026 profit forecast due to rising fuel costs and disruptions from the Iran war. Airlines are now expected to earn $23…

IATA reduces 2026 airline profit forecast to $23 billion due to rising fuel costs and geopolitical instability.