News
IATA director-general says profitability still a major challenge amid low margins
February 4th 2026
International Air Transport Association (IATA) director-general, Willie Walsh, says airlines are still operating on "wafer thin" margins even amid robust passenger traffic growth and strong demand for air travel. Read More » The airline lobby group estimates airlines around the world are expected to generate profits of about US$41 billion this year, up from about US$40 billion in 2025. The forecast 2026 profit represented a net margin of 3.9% and an operating margin of 6.9%. "For context, the best year the airline industry ever saw in terms of profitability was in 2015 when we delivered an operating margin of 8.3% and a net margin of 5.0%," Walsh told delegates at the Changi Aviation Summit in Singapore on Monday in prepared remarks. "So this will continue to be a significant challenge for our industry as we go through 2026." Margins among Asia Pacific carriers were expected to be significantly lower than the global average, with IATA forecasting an operating margin of about 5% and net margin of about 2.3% for the region. Walsh said supply chain disruptions continued to have a major impact on the industry, referencing figures from an IATA-commissioned report which showed airlines’ operating fleets were, on average, two years older than the long-term average because of the delays in the delivery of new aircraft. "Regrettably, we see this disruption continuing for some time to come," Walsh said.
