This year turned out to be an uncertain one for global airlines, which throughout 2025 have had to contend with a variety of economic obstacles.
But despite the financial hardships, air carriers around the world are set to make record-breaking profits in 2026, according to the International Air Travel Association (IATA), an aviation industry group.
The organization released its financial outlook report for next year, and it predicts the global airline industry will see “a stabilization of profitability even as supply chain issues persist,” according to the report.
In 2026, global airlines are expected to make a combined total net profit of $41 billion, an increase from $39.5 billion in 2025. Although that would be the industry’s highest-ever profit, next year’s net profit margin is still expected to remain at 3.9%, the same as in 2025.
“That’s extremely welcome news considering the headwinds that the industry faces—rising costs from bottlenecks in the aerospace supply chain, geopolitical conflict, sluggish global trade, and growing regulatory burdens among them,” said Willie Walsh, IATA’s Director General.
The supply chain issues have caused widespread delays in new aircraft deliveries, which in turn means airlines are flying older planes for longer amounts of time. That can mean extra fuel and maintenance costs as carriers continue to operate the less fuel-efficient aircraft that need more frequent tune-ups. Those headwinds alone are predicted to cost the airline industry about $11 billion in 2025, according to IATA.
Among the additional economic difficulties in 2025 have been shifting tariff policies and a historic government shutdown in the United States.
“Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” Walsh said.
Many airlines have relied on skyrocketing demand for premium seats, as well as steady demand for international routes, to weather the worst of the headwinds. Premium carriers that operate an international-first route network, such as Emirates, have done exceedingly well: the Dubai-based carrier reported a record-breaking half-year profit of $3.1 billion in November.
Next year’s net profit per passenger transported is also expected to hold steady from 2025 at a rate of $7.90 per flier. The record for net profit per passenger was set in 2023 at $8.50 earned per flier.
Looking ahead to 2026, passengers can expect to see plenty of full planes, as IATA predicts that load factors will continue to set record highs next year. Airlines are forecast to fill 83.8% of all seats over 2026, and annual passenger numbers are expected to jump by 4.4% year-over-year, reaching a total of $5.2 billion in 2026.
Total industry revenues are also predicted to grow next year by 4.5% year-over-year, for a total of $1.053 trillion in 2026.
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