Middle East airlines poised for highest global profitability in 2026
Region expected to lead with strong margins, passenger growth, and robust hub connectivity
DUBAI, UAE (MNTV) — Airlines in the Middle East are projected to be the world’s most profitable in 2026, outperforming global averages in both financial performance and operational efficiency, according to the latest data from the International Air Transport Association (IATA).
Reports from industry sources highlight the region’s rising dominance as a global aviation hub.
IATA forecasts that Middle Eastern carriers will achieve the highest net profit margin worldwide at 9.3 percent and record the highest profit per passenger at $28.6, significantly above the global averages of 3.9 pc and $7.9.
Kamil Al Awadhi, IATA Regional Vice President for Africa and the Middle East, noted that the region’s profitability reflects strategic investments, supportive regulatory frameworks, and the Gulf’s position as an international connecting hub, while cautioning that disparities in performance remain a regional concern.
Strong traffic growth underpins the region’s outlook. Middle East airlines are expected to generate a combined net profit of $6.9 billion in 2026, driven by robust long-haul demand, expanded hub capacity, and continued investment in airport infrastructure.
Passenger numbers in the region are forecast to reach 240 million next year, representing a 6.1 pc increase, higher than the global passenger growth rate of 4.9 pc.
Cargo volumes are projected to grow by 2.6 pc, although Middle Eastern operators are likely to maintain stable capacity in line with global demand patterns.
Despite the strong performance, structural challenges persist across the Middle East and North Africa. As of October, $1.2 billion in airline funds remained blocked globally, with $515 million — around 43 pc — held within the region.
Algeria accounts for the largest share due to new approval requirements that have slowed processing times, while Lebanon’s blocked funds reflect unresolved balances from 2019 to 2021.
Geopolitical instability continues to affect operations in Yemen, Syria, Iraq, and Lebanon, leading to prolonged airspace closures, longer flight routes, higher fuel consumption, and increased emissions.
Airlines also face operational risks from sanctions and growing instances of GNSS signal interference, including spoofing and jamming.
IATA emphasized that regional coordination is key to unlocking the full potential of Middle East aviation.
Priorities include advancing toward an integrated air transport market, harmonizing regulatory frameworks around consumer protection, and supporting countries emerging from sanctions in meeting international standards.
Al Awadhi said that improving alignment and clearing blocked funds are essential to enhancing connectivity, efficiency, and the region’s competitive advantage in global aviation.
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