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Airlines lower profit outlook for 2026
IATA expects the global aviation sector to record net profits of $23 billion in 2026, halving the previous forecast of $41 billion. This decline is due to rising fuel costs resulting from the war in Iran and disruptions in the Gulf region, which have led to flight route cancellations and increased prices. Despite the ongoing strong demand for travel, the rising fuel prices and persistent geopolitical challenges may cause some smaller airlines to go bankrupt and leave some unprofitable destinations.
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