IATA Projects $41bn Global Airline Net Profit In 2026

Global airline trade body IATA said on Tuesday the airline sector would post record profits next year.

The projection comes despite ongoing supply chain issues leading to slower aircraft deliveries and a delay in rolling out more fuel-efficient jets.

Airbus cut its plane delivery target for 2025, citing a quality issue with some metal fuselage panels on its A320 planes, according to a Reuters report.

The world’s leading jetmakers, Airbus and Boeing, have both faced delivery delays to their airline clients in recent years.

Without newer, more efficient planes, airlines say they cannot cut back fuel costs while flying more people.

Still, IATA struck an optimistic note for the year to come, pointing to Europe in particular as it overtakes the U.S. as the region with the highest net profit per passenger.

“Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” said International Air Transport Association director general Willie Walsh in a statement.

He later added that a slight dip in jet fuel prices could help provide some financial relief, but regulatory costs, particularly in Europe, as well as uncertainty tied to global conflict, drone incursions, and GPS interference, are hampering potential for even greater profitability.

Walsh said confidence in Airbus has waned, while performance has improved, amid ongoing supply chain issues.

Earlier this month, the European planemaker was forced to slash delivery targets when defects surfaced in some of its fuselage panels, days after recalling 6,000 A320-series planes over a software glitch linked to cosmic radiation.

“I think we are seeing a shift where it’s generally recognised that Boeing’s performance has significantly improved. People have a lot more confidence in Boeing delivering the commitments that they have made, and we’re seeing people having less confidence in Airbus,” Walsh stated.

The German engineering giant blamed restructuring provision…

“It’s disappointing for the industry, because we will have fewer new aircraft being delivered than was expected,” he added.

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Airbus cut its target by 4% and confirmed deliveries had already slowed in November, weeks after the A320 series, including the best-selling A321, surpassed the recently troubled Boeing 737 MAX as the most-delivered passenger jet in history.

But ultimately Walsh pointed the finger at engine makers for hampering deliveries, saying they were far slower than the mainframe makers at delivering new and repaired engines and were forcing planemakers like Airbus, in some cases, to push back their timelines.