Rio de Janeiro: Middle East airlines are expected to plunge into a collective $4.3 billion loss in 2026, with profit per passenger dropping from $31.50 last year to a loss of $21.40, International Air Transport Association (IATA) said in its latest financial outlook for the global airline industry.

The report, released at IATA’s annual general meeting in Rio de Janeiro, said global airlines are expected to achieve a combined total net profit of $23.0 billion in 2026, roughly half the previously projected $41 billion.

The Middle East is the only region globally expected to slip into the red as airlines battle the fallout from the US-Israel-Iran war, which has severely disrupted operations across key Gulf hubs.

Passenger demand in the region is forecast to fall 11.4 per cent, while airline capacity is expected to decline 4.4 per cent. Net margins are projected to tumble to minus 6.1 per cent, compared to a positive 9.4 per cent in 2025.

“Sitting at the centre of the shock from the war in the Middle East, the region is expected to generate a net loss in 2026,” IATA said.

Gulf carriers hit by airspace closures

IATA said Gulf airlines are facing operational uncertainty after widespread airspace restrictions and flight disruptions linked to the conflict.

“The Gulf carriers face operational uncertainty following a near complete shutdown of airspace at the outbreak of the war,” said Willie Walsh, IATA Director General. “These carriers are doing an amazing job maintaining connectivity, but major financial impacts are unavoidable,” said Walsh.

The industry body said flight cancellations, rerouting, reduced transfer traffic and elevated operating costs are all weighing heavily on profitability.

Middle Eastern airlines, particularly major Gulf hubs, depend heavily on transit passengers connecting between Asia, Europe and Africa. The loss of this transfer traffic is reducing load factors and increasing unit costs.

Global airline profits set to halve in 2026

The wider global airline industry is also heading into a significantly weaker year.

IATA forecasts global airline profits will fall from $45 billion in 2025 to $23 billion in 2026, while net profit margins will shrink from 4.2 per cent to 2.0 per cent. “War-related disruptions in the Middle East and rising fuel costs have shifted the outlook for airlines to the worse,” Walsh said.

“Globally, airlines are expected to see profitability halve compared to 2025.” Net profit per passenger globally is expected to drop to $4.50, compared to $9.10 last year.

“Under the circumstances, that shows resilience,” Walsh said. “But it won’t even buy you a hot dog at most of the FIFA World Cup venues and it does not leave much of buffer should other costs or taxes start rising,” said Walsh.

Jet fuel prices soar

Still, the biggest pressure point for airlines remains fuel. Jet fuel prices are expected to average $152 per barrel in 2026, almost 70 per cent higher than the $90 average seen in 2025. Fuel costs are forecast to jump from $252 billion to $350 billion globally this year, pushing fuel’s share of airline operating expenses to more than 31 per cent.

“No sooner did we put COVID behind us than we faced aerospace supply chain failures, war in Ukraine, geopolitical tensions, and tectonic shifts in trade policies. And, when war broke out in the Middle East in March, oil prices jumped, and jet fuel prices skyrocketed,” said Walsh.

“As a result, we expect average jet fuel prices to be 70 per cent higher year-on-year. That will add $100 billion to our collective fuel bill this year,” he said.

IATA said many airlines remain exposed because they hedge crude oil rather than jet fuel directly, leaving them vulnerable to widening refining margins, known as the crack spread.

Demand stays resilient, for now

Despite rising costs, passenger demand continues to hold up globally. Airline revenues are expected to rise 9.4 per cent to $1.165 trillion in 2026, supported by higher ticket prices, strong travel demand and growing ancillary revenues.

Passenger ticket revenues alone are forecast to hit $839 billion, up 9.2 per cent year-on-year. Passenger load factors are also expected to reach another record high of 84 per cent. “The positive however, is that demand is holding up, even as airlines are raising fares and rates to cope,” Walsh said.

IATA polling showed that 49 per cent of travellers expect to spend more on travel this year, while another 43 per cent plan to spend the same as last year.

Aircraft shortages, engine delays add billions in costs

The report also stated that airline industry is also struggling with persistent aerospace supply chain failures.

IATA said aircraft order backlogs have climbed beyond 18,000 jets, while the average age of the global fleet has reached a record 15.2 years.

“Supply chain failures cost airlines at least $11 billion in 2025.” Airlines are increasingly being forced to keep older aircraft in service longer, resulting in higher maintenance costs, increased lease rates and reduced fuel efficiency.

The shortage of newer aircraft has also halted fuel-efficiency gains for the first time in history during 2024 and 2025, according to IATA.

The outgoing IATA chief blasted engine makers. Without mincing words, Walsh said, “My message to the engine OEMs is simple – stop gouging us and get back to making great engines that work and that last. Allowing these failures to extend into the next decade is totally unacceptable to the customers.”

GN

Asia’s wealthy families want to preserve their fortunes across generations, but many still lack basic succession plans, according to a new Lombard Odier survey.

The survey of more than 390 high-net-worth individuals across Asia-Pacific with net investable assets of at least $1 million found that 64.2% of respondents said preserving family wealth across generations was their main priority when considering wealth transfer.

Yet only 26.9% said their family had a full succession plan in place, while 39.4% said they had no succession planning at all. 

The findings expose what the Swiss private bank described as an “intention-implementation gap” among Asia’s wealthy families, many of whom remain underprepared despite growing awareness of succession risks. 

The issue is becoming increasingly urgent as Asia and the rest of the world undergo a massive intergenerational wealth transfer, particularly among first-generation entrepreneurs preparing to pass businesses and fortunes to their children. 

John Woods, Lombard Odier’s Asia chief investment officer, warned that many families risk squandering wealth without stronger governance and planning frameworks.

“This sort of concern around this contradiction is worrisome to me,” Woods said during a roundtable accompanying the report launch.

“If [majority] of the clients we surveyed haven’t really given a major thought to wealth planning, they won’t hold on to their wealth very long,” he added.

Across Asia-Pacific, Japan, the Philippines, Malaysia and Hong Kong stood out for weak succession preparedness. About half of the respondents in those markets said they had no succession plan or felt such planning was not relevant to them.

The survey also found that many older family members have yet to meaningfully involve younger generations in governance and wealth discussions. More than a quarter of Baby Boomers surveyed said their families had not discussed having a clear common purpose for wealth. 

Louisa Loo, Lombard Odier’s head of wealth planning for Asia, said many wealthy Asian families continue to delay succession discussions because of cultural sensitivities and a lack of urgency. 

Communication remains a major hurdle, particularly in Asia, where discussions around inheritance and wealth transfer are often considered taboo. Nearly 29% of respondents identified a lack of open communication as a key governance challenge. 

“When something unexpected happens, which often does, many families will be completely unprepared,” she said.

CNBC

EDECS group, , a leading EPC contractor in the MEA region, has been awarded the Construction of the Dry Port and Veterinary Quarantine at the Economic Zone in Al Dhahirah (EZAD) – IP3,Ibri provence, Al Dhahirah Governorate, Sultanate of Oman, by the Public Authority for Special Economic Zones and Free Zones (OPAZ), one of the Sultanate of Oman’s strategic economic projects aimed at advancing the objectives of Oman Vision 2040, with Assarain Group (Said Salem Al Wahaibi Group) as EDECS’ local partner in Oman. The award marks a strategic milestone in EDECS Group’s continued expansion across the GCC region and reinforces the Group’s growing role in delivering large-scale logistics and infrastructure developments.

The signing attended by Saudi and Omani government ministers and authorities, prominent public and private sector representatives, and key stakeholders from across the region, reflecting the strategic importance of the project to Oman’s future economic and infrastructure landscape.

Located in Ibri provence, Al Dhahirah Governorate, the Economic Zone at Al Dhahirah spans approximately 388 square kilometers and enjoys a strategic location approximately 20 kilometers from the Rub Al Khali border crossing with the Kingdom of Saudi Arabia and around 105 kilometers from Ibri Industrial City. The project is designed to serve as a major economic and logistics gateway that strengthens regional trade connectivity and supports economic integration between Oman, Saudi Arabia, and neighboring markets.

The development of the integrated economic zone aligns closely with Oman Vision 2040, the Sultanate’s long-term roadmap for sustainable development and economic diversification. The project is expected to contribute significantly to enhancing trade movement, attracting investments, supporting industrial and logistics activities, and creating new economic opportunities that reduce dependence on oil revenues while driving sustainable growth across the Sultanate.

The scope of work encompasses the full development cycle of the Dry Port project within the Economic Zone at Ibri provence, Al Dhahirah (EZAD), including enabling works, earthworks, infrastructure development, utility networks, and the construction of all operational and supporting facilities such as administration buildings, X-ray facilities, accommodation buildings, and associated structures, through to testing, commissioning, and final fit-out, delivering a fully integrated and operational logistics asset.

Commenting on the signing, Eng. Hussein El Dessouky, Chairman and Managing Director of EDECS Group, said:

“We are proud of our partnership with our client, the Public Authority for Special Economic Zones and Free Zones in the Sultanate of Oman on this strategic project, which marks an important milestone in EDECS Group’s regional expansion and its long-term commitment to delivering transformative infrastructure projects across the GCC countries.

The Economic Zone at Al Dhahirah is a highly promising project with significant economic and logistical potential, and we are confident that this collaboration with OPAZ will contribute meaningfully to Oman Vision 2040 by enhancing trade connectivity, attracting investments, and creating sustainable economic opportunities for the Sultanate and the wider region.”

Al Sheikh Salem Bin Said Al Wahaibi, Chairman of Assarain Group, stated:

“This agreement reflects Assarain Group’s commitment to diversifying the Omani economy and strengthening the Sultanate’s position as a strategic regional commercial and logistics hub. As a diversified group that has played a vital role in the country’s economic and social development since 1975, we remain committed to delivering excellence and innovation across our various sectors, enhancing economic competitiveness, and fostering confidence and growth in economic, social, and developmental relations across the Sultanate.

Thanks to the wise leadership and clear strategic vision of His Majesty, Sultan Haitham bin Tariq, Oman has transformed global economic challenges into promising investment opportunities through flexible policies focused on diversification, financial sustainability, and empowering the private sector as a key partner in development.

We are also proud to collaborate with EDECS Group, an EPC leader in the MEA region with extensive experience in executing complex and high-value projects. EDECS brings strong technical capabilities that are essential for this development, and we take pride in this partnership as we work together to deliver a project that creates long-term value for Oman and supports the goals of Oman Vision 2040.”

This milestone reflects EDECS Group’s position as a Grade A, EPC contractor, recognized for its innovative engineering capabilities, strong execution expertise, and unwavering commitment to the highest safety standards. EDECS Group has been present in the KSA since 2013 across the Eastern and Western Provinces, and continues to deliver complex projects across the MEA region in line with its strategic vision of selectively pursuing high-impact developments that create long-term value and support sustainable economic growth.

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