Global airline profits are expected to fall by roughly half in 2026 as soaring jet fuel prices drive up operating costs, according to a new report from the International Air Transport Association (IATA).
IATA Director General Willie Walsh said the conflict involving the United States and Iran has pushed oil and jet fuel prices sharply higher.
Despite continued demand for travel, airlines are increasing ticket prices to offset higher expenses. Walsh said industry net profits are expected to decline from $45 billion in 2025 to $23 billion in 2026, while profit margins could shrink from 4.2% to 2%.
Major airlines including EasyJet and Lufthansa have already reported rising fuel expenses, while Ryanair warned that prolonged high oil prices could create financial stress for some European competitors.
According to IATA, the key uncertainty is how long travelers and businesses will tolerate higher travel costs before demand begins to weaken.
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The global airline industry nearly halved its 2026 profit forecast citing conflict in the Middle East that has driven up fuel costs, disrupted key air corridors and exposed the fragility of a sector operating on thin margins https://t.co/Am6aUvRaxG pic.twitter.com/IAMQFwwnd5
— Reuters (@Reuters) June 8, 2026
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