Airlines in the Middle East are expected to slip into losses in 2026 as regional conflict, airspace disruptions and soaring fuel costs weigh heavily on financial performance, according to the latest outlook released by the International Air Transport Association (IATA).
While airlines in all other regions are projected to remain profitable, albeit at lower levels than previously forecast, the Middle East is expected to be the only region to record a collective net loss.
IATA said global airline profitability is expected to decline sharply this year, with industry net profits forecast to fall from $45 billion in 2025 to $23 billion in 2026. Net profit margins are projected to narrow from 4.2 per cent to 2.0 per cent.