IATA Projects $41 Billion Record Net Profit But Warns Of “Wafer-Thin” Margins

At the Changi Aviation Summit on February 2, 2026, IATA Director General Willie Walsh provided a comprehensive outlook for the global airline industry, forecasting a record-breaking total net profit of $41 billion for the year. While this figure marks a new high, Walsh cautioned that the industry’s net profit margin remains stuck at a “wafer-thin” 3.9 percent, essentially earning just $7.90 per passenger.

The industry is battling a $11 billion “maintenance and fuel tax” caused by delivery delays of new aircraft, forcing airlines to operate older, less efficient fleets that are, on average, two years older than the long-term norm.

Regional performance reveals a stark divide in the “recovery” narrative. The Asia-Pacific region is set to lead global traffic growth with a 7.3 percent increase in 2026, though its net margin trails at 2.3 percent.

 In contrast, African airlines face the toughest environment, projected to earn a collective profit of just $200 million (a 1.3% margin). IATA highlighted that African carriers pay 17 percent more for fuel and face taxes up to 15 percent higher than the global average, with $954 million in airline funds still blocked by governments on the continent, Algeria being the current largest contributor to this debt.

On the technological front, IATA is pushing for a total transition to Contactless Travel via its “One ID” initiative. New survey data presented at the summit shows that 78 percent of passengers now want a single “Digital Wallet” on their smartphones that combines passports, visas, and boarding passes.

 IATA is urging governments to accelerate the issuance of Digital Travel Credentials (DTC) to move beyond “band-aid” solutions for airport congestion. Without this digital shift, Walsh warned that traditional paper-based processes will be unable to cope with the 5.2 billion travelers expected to take to the skies this year.