<p>Bengaluru: The global airline industry is projected to stabilise profitability in 2026, posting a record net profit of $41 billion, higher than the $39.5 billion expected this year, according to the International Air Transport Association (IATA). This growth comes despite continued headwinds including supply chain disruptions, regulatory cost burdens, infrastructure challenges and geopolitical tensions, the global airline trade body said in its latest financial outlook released in Geneva on Tuesday.</p>.<p>Passenger demand is expected to remain strong, particularly in the Asia-Pacific region, with India and China emerging as key drivers. IATA forecasts the region will post a net profit of $6.6 billion in 2026, with profit per passenger estimated at $3.20. “Passenger demand remains robust, with India and China leading regional expansion, driven by rising tourism and a growing middle-class,” the report states.</p>.<p>Industry margins, however, are expected to remain unchanged. The net profit margin for 2026 is forecast at 3.9%, with profit per passenger at $7.90 — the same as 2025 and slightly below the 2023 peak of $8.50. “Airlines are expected to generate a 3.9% net margin and a $41 billion profit in 2026. That’s extremely welcome news, considering the headwinds the industry faces — rising costs from bottlenecks in the aerospace supply chain, geopolitical conflict, sluggish global trade, and growing regulatory burdens,” IATA Director General Willie Walsh reiterated.</p>.'Chidi Udd' to Johnny Lever's 'Abhi Theek Kar Deta Hoon': IndiGo memes soared when flights didn't.<p>Supply chain challenges continue to constrain capacity growth and profitability. Aircraft delivery delays and manufacturing issues have resulted in a shortage of at least 5,300 aircraft globally, with the order backlog now exceeding 17,000 units — nearly 60% of the world’s active fleet. Airbus’ recent A320 delivery adjustment, following fuselage panel inspections, has further contributed to constraints.</p>.<p>Operational inefficiencies linked to conflicts and restricted airspace are expected to persist. “Airspace closures, GNSS (Global Navigation Satellite System) interference, and re-routing for both political and safety reasons are constraining operations and reducing efficiencies,” the report notes.</p>.<p class="CrossHead">$1 trillion revenues</p>.<p>On the revenue front, the industry is expected to cross the $1 trillion threshold for a second consecutive year. Total revenues are projected to rise 4.5% to $1.053 trillion in 2026, with operating expenses forecast at $981 billion. Passenger numbers are expected to rise 4.4% to 5.2 billion, with ticket revenues projected at $751 billion. Air cargo revenue is forecast at $158 billion, supported by strong e-commerce flows and semiconductor shipments.</p>.<p>Regionally, Europe is forecast to deliver the highest profit at $14 billion in 2026, followed by North America at $11.3 <br />billion.</p>
<p>Bengaluru: The global airline industry is projected to stabilise profitability in 2026, posting a record net profit of $41 billion, higher than the $39.5 billion expected this year, according to the International Air Transport Association (IATA). This growth comes despite continued headwinds including supply chain disruptions, regulatory cost burdens, infrastructure challenges and geopolitical tensions, the global airline trade body said in its latest financial outlook released in Geneva on Tuesday.</p>.<p>Passenger demand is expected to remain strong, particularly in the Asia-Pacific region, with India and China emerging as key drivers. IATA forecasts the region will post a net profit of $6.6 billion in 2026, with profit per passenger estimated at $3.20. “Passenger demand remains robust, with India and China leading regional expansion, driven by rising tourism and a growing middle-class,” the report states.</p>.<p>Industry margins, however, are expected to remain unchanged. The net profit margin for 2026 is forecast at 3.9%, with profit per passenger at $7.90 — the same as 2025 and slightly below the 2023 peak of $8.50. “Airlines are expected to generate a 3.9% net margin and a $41 billion profit in 2026. That’s extremely welcome news, considering the headwinds the industry faces — rising costs from bottlenecks in the aerospace supply chain, geopolitical conflict, sluggish global trade, and growing regulatory burdens,” IATA Director General Willie Walsh reiterated.</p>.'Chidi Udd' to Johnny Lever's 'Abhi Theek Kar Deta Hoon': IndiGo memes soared when flights didn't.<p>Supply chain challenges continue to constrain capacity growth and profitability. Aircraft delivery delays and manufacturing issues have resulted in a shortage of at least 5,300 aircraft globally, with the order backlog now exceeding 17,000 units — nearly 60% of the world’s active fleet. Airbus’ recent A320 delivery adjustment, following fuselage panel inspections, has further contributed to constraints.</p>.<p>Operational inefficiencies linked to conflicts and restricted airspace are expected to persist. “Airspace closures, GNSS (Global Navigation Satellite System) interference, and re-routing for both political and safety reasons are constraining operations and reducing efficiencies,” the report notes.</p>.<p class="CrossHead">$1 trillion revenues</p>.<p>On the revenue front, the industry is expected to cross the $1 trillion threshold for a second consecutive year. Total revenues are projected to rise 4.5% to $1.053 trillion in 2026, with operating expenses forecast at $981 billion. Passenger numbers are expected to rise 4.4% to 5.2 billion, with ticket revenues projected at $751 billion. Air cargo revenue is forecast at $158 billion, supported by strong e-commerce flows and semiconductor shipments.</p>.<p>Regionally, Europe is forecast to deliver the highest profit at $14 billion in 2026, followed by North America at $11.3 <br />billion.</p>