According to a report by the International Air Transport Association (IATA), airlines spent $252 billion on fuel last year, but these costs are expected to rise by 40% to $350 billion this year.

The report highlights that war-related disruptions in the Middle East and rising fuel prices have worsened forecasts for airlines. The increase in fuel costs is expected to significantly reduce airline profits.

IATA forecasts that total airline profits in 2026 will be around $23 billion, nearly half of the $41 billion recorded in 2025 and below the previously forecast $45 billion.

IATA Director General Willie Walsh stated: "The financial results of all airlines are under pressure from the sharp rise in jet fuel prices, which have increased by about 70%. Some of the additional costs can be offset through price adjustments and efficiency improvements, but this is not enough to maintain profitability at last year's level."

Smaller carriers that started the year with weak balance sheets are facing serious difficulties. Regionally, all companies remain profitable, but their financial results have deteriorated significantly, except in the Middle East. Gulf carriers are facing operational uncertainty after the near-total closure of airspace at the start of the war.

Source: kun.uz