Global airlines are set to deliver record profits in 2026, data from the International Air Transport Association (IATA) shows. But unfortunately, that mightn’t mean cheaper fares for flyers.
IATA forecasts indicate a combined net profit of approximately US$41 billion (AU$61 billion) for airlines in 2026, up from US$39.5 billion (AU$59 billion) in 2025.
Significantly, however, profit margins are predicted to stay unchanged at just under four per cent.
Strong sector
IATA says airlines’ record profits highlight the resilience of an industry navigating supply chain issues, geopolitical uncertainty and rising regulatory costs.
With passenger demand doing most of the work, revenue is expected to top US$1 trillion during the year, supported by high load factors, stable yields and growing ancillary income tied to passenger services.
Meanwhile, costs are shifting rather than falling. According to IATA, fuel prices are easing, but labour has become airlines’ largest expense. Maintenance, leasing and airport charges are also increasing as fleets age and capacity tightens.
What it means
For travellers, this is a mixed outlook. While stronger profits can support network stability, cabin upgrades and operational reliability, flat margins suggest airlines will protect yields.
For Australian leisure travellers, that points to broadly steady fares, fewer bargain spikes and fewer shock increases, especially on long-haul routes.
KARRYON UNPACKS: Record profits sound dramatic, but context matters. Airlines are healthier, not overflowing. For agents, expect stable capacity, disciplined pricing and more conversations about value, not headline cheap fares today globally.
