Iran conflict fuels $100B airline losses

Iran's war is causing a sharp rise in aircraft fuel prices, imposing an additional cost of $100 billion on airlines in 2026. As a result, the sector's net profits are expected to be halved, dropping from $43 billion in 2025 to $23 billion this year, with profit margins decreasing from 4.2% to 2%. Airlines are also facing higher operating costs for older aircraft, with IATA estimating that these costs led to an $11 billion increase in fuel bills during 2025.

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