Global airlines are poised to deliver record net profits of $41 billion in 2026, the International Air Transport Association (IATA) said on Tuesday, signalling continued financial resilience despite persistent supply-chain constraints, geopolitical tensions and delays in aircraft deliveries. The projected profit for 2026 is higher than the estimated $39.5 billion the industry is expected to earn in 2025.
Margins hold steady
IATA expects the 2026 net profit margin to stay at 3.9%, with industry-wide revenues forecast to grow 4.5% to $1.053 trillion.
The pressures have intensified after Airbus cut its 2025 delivery target due to a quality issue affecting metal fuselage panels on some A320 aircraft. Both Airbus and Boeing have struggled with delivery delays in recent years, limiting carriers’ ability to bring down fuel costs. “Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,” IATA director general Willie Walsh said.
Sustainability targets a risk
The industry’s near-term optimism, however, contrasts with a more cautious view on sustainability. IATA warned that the aviation sector is unlikely to meet its green fuel usage targets, citing weak production and high prices of sustainable aviation fuel (SAF).
SAF currently accounts for about 0.3% of global jet fuel consumption, and is expected to reach 0.7% in 2025. IATA projects 2.4 million metric tonnes of SAF to be available in 2026, covering only 0.8% of total fuel demand, far short of levels required to stay on track for the sector’s 2050 net-zero commitment.
“We’re not seeing SAF produced in the volumes we had hoped for and had expected. That is disappointing,” Walsh said, adding that airlines were willing buyers but unable to secure sufficient supply. Some carriers may begin scaling back their formal sustainability pledges in 2026, he said, pointing to Air New Zealand as already adjusting targets to more “realistic expectations”.