Airlines face sharp profit squeeze as Middle East war and fuel costs bite

Global airlines are heading into a tougher 2026, with industry profits expected to halve as war-related disruption in the Middle East and a sharp rise in fuel prices weigh heavily on carriers, according to the International Air Transport Association (IATA).

IATA said airlines are now expected to make a combined net profit of $23 billion this year, down from an earlier forecast of $41 billion and roughly half the $45 billion estimated for 2025....