India, June 7 -- Global airline chiefs open their annual summit in Rio de Janeiro on Saturday facing a sharper test of the industry's post-pandemic recovery, as the Iran war drives up fuel costs and disrupts airspace while carriers try to cushion the blow with higher fares and tighter capacity.

The June 6-8 annual meeting of the International Air Transport Association (IATA) comes as that fuel shock collides with another problem airlines cannot quickly fix: a shortage of new aircraft.

Boeing and Airbus delivery delays have forced many carriers to keep older, less fuel-efficient jets in service for longer, raising maintenance and fuel bills just as oil prices have climbed.

IATA, which represents more than 370 airlines accounting for abo...