Airline profits set to halve this year as fuel costs jump by $100 billion: IATA

This photograph shows an aircraft of low-cost Irish airline Ryanair parked at the Thessaloniki airport "Makedonia", in Thessaloniki on May 7, 2026. Ryanair will shut down its base at Thessaloniki Airport in October 2026, informing staff of the move. The decision follows a dispute over increased airport charges imposed by operator Fraport Greece. (Photo by Sakis Mitrolidis / AFP via Getty Images) Sakis Mitrolidis | Afp | Getty Images The International Air Transport Association warned that global airlines can expect to see profits plunge by half in 2026 as the rising cost of jet fuel continues to squeeze the industry. Oil prices jumped and jet fuel costs soared after the U.S.-Iran conflict began on Feb. 28, noted IATA's outgoing director general Willie Walsh , adding to the challenges he said airlines have faced in recent years from the Covid-19 pandemic to the war in Ukraine. "As a result, we expect average jet fuel prices to be 70% higher year-on-year," Walsh said in a report on the State of the Global Air Transport Industry published Sunday. "That will add $100 billion to our collective fuel bill this year." Walsh noted that while travel demand remains resilient, airlines are raising fares to cope, but he said growth will inevitably be slower. "Considering all this, we expect profitability to halve from 2025," Walsh added. …