International airlines are anticipating the transport of a remarkable 5.2 billion passengers in 2026, according to the latest report from the industry’s trade association. This optimistic forecast comes despite various global challenges impacting the sector.
The International Air Transport Association (IATA) has also revised its profit expectations for 2025, projecting earnings to be higher than previously estimated, and indicating that profits will remain steady into the following year.
Projected Earnings and Industry Challenges
As per IATA, which encompasses approximately 360 carriers representing 80% of the global air traffic, profits for 2025 are now expected to reach US$39.5 billion, an increase from the US$36 billion forecasted during the annual general meeting in June.
IATA’s director general, Willie Walsh, described the enhanced performance as “welcome news” given the numerous headwinds faced by the airline industry.
The challenges cited include escalating costs due to supply chain bottlenecks, geopolitical tensions, sluggish global trade, and increasing regulatory demands.
Profitability Outlook Across Regions
Walsh attributed the positive outlook to the improved performance of air freight, which has thrived despite trade disputes sparked by U.S. tariffs.
“Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” he stated in an IATA announcement.
Looking ahead, profits in 2026 are estimated to reach US$41 billion, although persistent issues with aircraft availability may limit performance, according to IATA.
However, profitability forecasts vary significantly across different regions. Airlines based in the Middle East are projected to achieve a net profit of around US$28.60 per passenger, while Europe anticipates US$10.90, North America US$9.80, the Asia-Pacific region US$3.20, and Africa US$1.30.
The global number of passengers this year is expected to approach 5 billion, with a projected total of 4.98 billion, an increase from 4.77 billion in 2024, which was the previous record.
📈 Looking for Ways to Grow Your Savings?
After budgeting or planning your property expenses, explore smarter investing options like REITs and stocks for long-term growth.
📈 Start Trading Smarter with moomoo Malaysia →(Sponsored — Trade REITs & stocks with professional tools)
Danny H is a real estate negotiator in Miri, specializing in residential and commercial properties. He provides trusted guidance, updated listings, and professional support through MiriProperty.com.my to help clients make confident property decisions.
