IATA warns airline profits will fall to $23bn in 2026
Airline profits are about to take a big hit, says IATA (dropping from $45 billion in 2025 to just $23 billion in 2026).
The main culprits? Soaring fuel prices and ongoing conflicts in the Middle East.
Airlines' net profit margins are shrinking too, falling from 4.2% last year to only 2%.
Jet fuel up nearly 70%
Jet fuel is expected to jump nearly 70% in 2026, raising the industry's fuel bill from $252 billion to $350 billion and eating up more than 31% of operating costs.
Middle Eastern airlines are especially feeling the squeeze, facing losses of $4.3 billion due to airspace closures and flight cancelations caused by regional tensions.
Profit per passenger falls to $4.50
Even with passenger traffic hitting an all-time high at 5.1 billion this year and load factors reaching 84%, airlines aren't seeing much extra cash.
Rising costs mean profit per passenger will drop from $9.10 in 2025 to just $4.50 in 2026, so flying might be busier than ever, but it's not paying off for airlines like it used to.