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IATA warns Middle East conflict and aircraft shortages will halve aviation profits by 2026
The International Air Transport Association (IATA) warns that global commercial aviation profits are projected to be halved by 2026. This downturn is attributed to the ongoing conflict in the Middle East and persistent delays in aircraft deliveries.
During a session organized by the France-Macau Chamber of Commerce, IATA regional manager Erik Chan noted that while the industry is expected to see total revenues of $1.17 trillion in 2026—a 9.5% increase—rising operating expenses are expected to outpace this growth. Expenses are projected to climb 13.1% to $1.12 trillion.
Chan highlighted that the current year's projected net profit of $23 billion represents a slim 2% margin. This is significantly lower than previous profitability forecasts, which were nearly double. The decline is further compounded by a drop in passenger growth from 5% to 2% and cargo transport growth falling to near zero. A key factor remains the disruption of energy transit through the Strait of Hormuz, which handles approximately one-fifth of the world's crude oil.
Entities
Erik Chan · France-Macau Chamber of Commerce · International Air Transport Association · Strait of Hormuz
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Global commercial aviation profits are projected to be reduced by half by 2026. www.correiodamanhacanada.com · dinheirovivo.dn.pt · www.sabado.pt
- [● 3 SOURCES] Operating expenses are projected to rise by 13.1% to $1.12 trillion in 2026. www.correiodamanhacanada.com · dinheirovivo.dn.pt · www.sabado.pt
- [● 3 SOURCES] The aviation sector is projected to earn approximately $23 billion in net profits this year, representing a 2% profit margin. www.correiodamanhacanada.com · dinheirovivo.dn.pt · www.sabado.pt
- [● 3 SOURCES] Passenger growth has fallen from 5% to 2%, while cargo transport growth has dropped to nearly zero. www.correiodamanhacanada.com · dinheirovivo.dn.pt · www.sabado.pt
- [● 3 SOURCES] Total industry revenue is expected to reach $1.17 trillion in 2026, a 9.5% increase from the previous year. www.correiodamanhacanada.com · dinheirovivo.dn.pt · www.sabado.pt
- [● 3 SOURCES] The decline in profitability is driven by military conflict, economic pressure, and aircraft shortages. www.correiodamanhacanada.com · dinheirovivo.dn.pt · www.sabado.pt