The International Air Transport Association (IATA) has issued a major warning regarding a “fragmented” global regulatory landscape that threatens to drive up airline costs and disrupt international connectivity. Ahead of the 2026 World Legal Symposium in Warsaw, IATA highlighted that carriers are no longer just managing traditional flight safety risks but are now “under siege” by a new wave of compliance demands.
These include aggressive Anti-Greenwashing laws, evolving Environmental, Social, and Governance (ESG) reporting standards, and the legal complexities of integrating Artificial Intelligence into operations. IATA’s Acting General Counsel, Leslie MacIntosh, cautioned that diverging national measures are undermining the uniform application of international treaties, creating a “maze” for global carriers.
A primary flashpoint is the emergence of “Consumer Protection 2.0,” where regulators, particularly in Europe and North America are doubling down on mandatory compensation rules. IATA expressed deep concern over the European Parliament’s push to overhaul EU261, which could force airlines to provide standard compensation forms within 48 hours of a delay and provide free cabin luggage regardless of business model.
Industry experts warn that these “cost burdens” could make air travel less affordable, with EU261 alone already costing the industry approximately €8.1 billion annually. In the UK, the Digital Markets, Competition and Consumers Act is set to sharpen scrutiny on emissions claims in airline marketing by Autumn 2026, putting “sustainability pledges” under a legal microscope.
The rise of Artificial Intelligence has introduced a “novel category of liability” for the sector. IATA identified that while AI offers efficiency gains, it also exposes airlines to massive risks regarding data privacy, cybersecurity, and misinformation.
Furthermore, regulators are beginning to investigate the intersection of AI and Competition Law, specifically how algorithms might influence dynamic pricing and market fairness. With global airline profit margins expected to remain razor-thin at 3.9 percent ($7.90 per passenger) in 2026, IATA warns that this “uncoordinated” regulatory pressure could stifle the very innovation and investment needed for the industry to reach its Net-Zero 2050 goals.
 has issued a major warning regarding a "fragmented" global regulatory landscape that threatens to drive up airline costs and disrupt international connectivity. Ahead of the 2026 World Legal Symposium in Warsaw, IATA highlighted that carriers are no longer just managing traditional flight safety risks but are now "under siege" by a new wave of compliance demands.){kind=link}