IATA: Disruption in Middle East routes and high oil prices lead to halving of profit in aviation industry

On June 10th, according to the latest global financial outlook for the aviation industry by the International Air Transport Association, the profitability of the aviation industry has been cut in half due to the interruption of Middle East routes and high oil prices caused by the war. Willie Walsh, Chairman of the International Air Transport Association, stated that the operational disruptions and rising fuel costs resulting from the Middle East conflict have worsened the prospects for airlines. Globally, airline profits are expected to decrease by half compared to 2025, with profits dropping from $45 billion to $23 billion this year and profit margins falling from 4.2% to 2.0%. The rapid 70% increase in aviation fuel prices is impacting the profitability of all airlines. Some additional costs are being recovered through price adjustments and efficiency improvements, but this is not enough to maintain profitability at the level of the previous year. Smaller airlines with weaker balance sheets at the beginning of the year are clearly facing difficulties. Regionally, all regions except the Middle East are expected to make a profit, but financial performance will be significantly weakened.