IATA says airline profits may halve as jet fuel costs rise

The International Air Transport Association says global airline profits could fall by about half in 2026 as jet fuel prices climb sharply. In a report published Sunday, IATA said higher fuel costs linked to the conflict between the U.S. and Iran have added roughly $100 billion to airlines’ collective fuel bills. The group’s outgoing director general, Willie Walsh, said average jet fuel prices may be about 70% higher year over year, which would reduce net profits from $45 billion in 2025 to $23 billion in 2026. IATA said airlines are still seeing solid travel demand, but many are raising fares and facing slower growth. The pressure is hitting carriers unevenly, with European airlines hedging more of their summer fuel needs and major carriers such as EasyJet and Lufthansa reporting higher fuel expenses. Ryanair, meanwhile, said it has hedged most of its summer fuel and reported stronger annual profit results.