Passenger demand is set to rise in 2026, with a record load factor of about 83.8% and passenger numbers reaching roughly 5.2 billion (up about 4.4%), while cargo volumes grow to around 71.6 million tonnes (up about 2.4%).

Delivery delays from major jetmakers persist, complicating efforts to cut fuel costs through newer, more efficient aircraft.

Profitability is stabilizing but margins remain below the cost of capital, signalling a need for structural reforms and efficiency gains across the value chain.

The story contrasts a brighter profit forecast with persistent structural headwinds facing the industry.

Overall message: the industry remains resilient but faces structural cost pressures, delivery delays, and considerations like SAF uptake and regional dynamics that will shape profits.

Regulatory environments vary by region, with Europe seen as more constraining and the US pursuing deregulation; ongoing order backlogs and infrastructure limits may persist.

Sustainable Aviation Fuel (SAF) adoption remains a focal point to reduce long‑term operating costs and meet environmental commitments.

IATA projects global airline industry profits to improve in 2026, with a net profit of about $41 billion and a net margin near 3.9%, up from 2025 despite ongoing supply chain and regulatory pressures.

Cargo performance is a key driver behind the favorable forecast, even amid a mixed macro backdrop and potential trade protection risks.

Rising labor costs are highlighted as a bigger profitability challenge than fuel in the near term.

Costs should ease modestly with slower inflation, but regulatory costs, infrastructure constraints, and airspace issues will continue to limit efficiency.

The report notes it was generated with AI assistance and reviewed by an editor.