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Airlines Take 50% Profit Hit Due To $100 Billion Jet Fuel Increase

IATA said airlines’ net profits will fall from $45 billion to $23 billion as jet fuel prices remain 70% higher year over year.

  • On Sunday, IATA Director General Willie Walsh warned that global airline profits will halve in 2026, falling from $45 billion to $23 billion as a $100 billion surge in jet fuel costs crushes industry margins.
  • Conflict between Iran and Israel triggered the Feb. 28 closure of the Strait of Hormuz, where roughly 20% of world petroleum liquids pass, causing jet fuel prices to spike 103% in March.
  • Delivery delays from Boeing and Airbus have forced airlines to operate aging, less efficient fleets; Walsh noted a backlog of over 18,000 aircraft and record average fleet age of 15.2 years.
  • Carriers are raising fares to absorb costs, though Ryanair CEO Michael O'Leary warned that if prices stay elevated this summer, European competitors face "real financial difficulties" and potential failures.
  • Reopening the Strait of Hormuz could take six to eight months in the best-case scenario, while United Airlines assumes oil will remain above $100 through 2027, extending industry uncertainty.
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gtp.gr broke the news on Sunday, June 7, 2026.
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