Rio de Janeiro, June 7 -- Global airline industry profits are expected to halve in 2026 as the conflict in the Middle East and a sharp rise in jet fuel prices weigh heavily on carriers worldwide, according to the latest financial outlook released by the International Air Transport Association (IATA).

IATA said airlines are expected to post a combined net profit of USD 23 billion in 2026, down from an estimated USD 45 billion in 2025 and significantly lower than the earlier forecast of USD 41 billion.

"War-related disruptions in the Middle East and rising fuel costs have shifted the outlook for airlines to the worse," said Willie Walsh, IATA's Director General.

"Globally, airlines are expected to see profitability halve compared to 2025...