Airlines operating in the Middle East are projected to move into collective losses in 2026 as escalating regional tensions, restricted airspace access and sharply higher fuel costs place significant strain on the sector, according to the latest outlook from the International Air Transport Association (IATA).

The industry body said that while carriers in other regions are also expected to see weaker profitability, the Middle East is likely to be the only region to post an overall net loss.

Across the global aviation industry, profits are expected to fall substantially. IATA forecasts net earnings declining from $45 billion in 2025 to $23 billion in 2026, with profit margins narrowing from 4.2 per cent to 2.0 per cent.

Willie Walsh, Director General of IATA, said the outlook has deteriorated due to conflict-related disruption in the Middle East and a significant rise in fuel costs. He noted that jet fuel prices have increased by nearly 70 per cent globally, forcing airlines to absorb higher operating expenses despite ongoing efficiency improvements and fare adjustments.

Walsh added that while all regions remain profitable, performance has weakened sharply across the board, except for the Middle East. He said Gulf carriers are operating under considerable uncertainty following major airspace disruptions linked to the onset of conflict, though they continue to maintain global connectivity despite financial pressure.

IATA estimates that global fuel expenditure will rise from $252 billion in 2025 to $350 billion in 2026, accounting for more than 31 per cent of total airline operating costs, compared with 25.4 per cent the previous year.

The projection is based on an average Brent crude price of $95 per barrel in 2026, up from $69 in 2025. Jet fuel is expected to average $152 per barrel, significantly higher than the previous year, while the spread between crude and jet fuel prices is expected to remain elevated.

Although airlines are hedging roughly one-third of their fuel needs, IATA warned that carriers remain exposed to sustained price increases and high refining margins.

Overall fuel consumption is forecast to remain steady at about 104 billion gallons in 2026, meaning that higher fuel prices are the primary driver of rising industry costs.

Walsh also highlighted that the sector’s financial resilience is under pressure, with average net profit per passenger expected to fall to $4.50, nearly half of the level recorded in 2025.

The Middle East is expected to be the most affected region, as geopolitical instability leads to capacity reductions, flight disruptions, and higher operating costs. Reduced transit traffic is also weighing on load factors, further increasing unit costs for airlines.

Despite these challenges, IATA said Gulf carriers continue to work to sustain global connectivity, even as financial headwinds intensify across the region.

Source: ZAWYA

The Qatar Civil Aviation Authority (QCAA) has dismissed reports circulating on social media alleging that the country's airspace has been closed or that flight operations have been suspended.

In a statement issued on Sunday, the authority described the claims as inaccurate and urged the public to rely exclusively on official sources for information related to aviation activities and operational updates.

The QCAA explained that the current Notice to Airmen (NOTAM) issued by the authority is designed to establish alternative routing options for aircraft. The measure aims to maintain air navigation services while ensuring the highest standards of safety, efficiency, and operational continuity.

According to the authority, the action was introduced in response to prevailing circumstances and is consistent with internationally recognized aviation regulations and best practices.

The regulator emphasized that air navigation services across Qatar remain fully operational and clarified that the NOTAM should not be interpreted as an indication of airspace closure or a halt to flight operations.

The QCAA also urged the public to avoid spreading rumours and unverified reports, stressing the importance of obtaining information through official communication channels.

Source: ZAWYA

A senior official from the International Air Transport Association (IATA) has cautioned Middle Eastern airlines against postponing aircraft orders despite rising costs and market uncertainty linked to the war in Iran, warning that such delays could become financially disadvantageous over time.

Kamil Al-Awadhi, IATA’s Regional Vice President for Africa and the Middle East, said he does not anticipate that the ongoing conflict or increased operating costs will significantly disrupt aircraft purchasing plans among carriers in the region. Speaking to reporters on Saturday during the association’s annual summit in Rio de Janeiro, he noted that Middle Eastern airlines remain among the largest global buyers of aircraft from manufacturers Boeing and Airbus.

Al-Awadhi said deferring aircraft orders is “not wise,” arguing that delays could ultimately increase costs for airlines due to extended waiting periods for new aircraft deliveries. He added that current production backlogs at manufacturers mean operators already face long lead times, particularly for the latest-generation single-aisle aircraft.

According to him, it could take several years for airlines to receive newly ordered planes, making postponements potentially counterproductive. He said most carriers are expected to continue with their existing fleet expansion strategies despite temporary disruptions.

“The plan is to continue where we're going … even though this is a hiccup,” he said.

Across the global aviation sector, airlines have been adjusting operations by reducing flight frequencies and increasing fares and ancillary charges in response to higher costs. This comes even as parts of the Middle East aviation network have experienced security risks, including airspace disruptions linked to the conflict.

Al-Awadhi also expressed concern over recent developments in Kuwait, where an attack earlier in the week at an airport killed one person and damaged a terminal used by international carriers. He said preliminary assessments suggest the affected infrastructure could take at least a year to fully restore.

“Looking at the damage from the videos and pictures that were sent to me, it’s going to take ages,” he said. “So my concern is, will the other carriers be able to go into Kuwait?”

He added that authorities may need to accelerate completion of sections of a new airport terminal or temporarily reassign international operations to facilities currently used by domestic airlines such as Kuwait Airways. He described the situation as one that would require complex logistical and operational decisions to resolve.

Source: Reuters

The Association of German Airports (Association of German Airports (ADV)) has issued a warning that the aviation sector may soon face widespread disruption as jet fuel supply pressures continue to intensify.

Speaking to the Sunday edition of Germany’s Welt newspaper, ADV chief executive Ralph Beisel said airlines are increasingly likely to cancel services, particularly low-cost carriers and routes considered less essential for tourism demand.

Beisel noted that under an optimistic outlook for 2026, passenger traffic would remain stable. However, he cautioned that a more severe scenario could see airport capacity fall by around 10 percent. Across the aviation network, that reduction could translate into disruptions affecting as many as 20 million travellers.

Such a decline would likely lead to certain destinations losing direct connectivity altogether, while others would see fewer available flights and higher fares due to constrained supply.

The association pointed to geopolitical tensions affecting global energy flows as a key factor behind the disruption. The conflict involving Iran has unsettled oil transportation routes through the Strait of Hormuz, contributing to rising jet fuel costs.

According to Beisel, jet fuel prices have remained at roughly double pre-conflict levels for more than two months, with no immediate relief expected. He added that even when fuel is available, current price levels make it difficult for airlines to operate many routes profitably, raising the likelihood of further schedule reductions in the months ahead.

Source: Oman Daily Observer

Europe’s aviation sector is preparing contingency measures to address potential jet fuel shortages caused by escalating tensions in the Middle East, prompting regulators to approve broader flexibility in fuel use across the region.

The European Union Aviation Safety Agency (EASA) announced Friday that supply disruptions affecting the Middle East and Arabian Gulf have impacted the availability of Jet A-1 fuel, the standard aviation fuel used throughout Europe. In response, regulators and fuel providers are assessing the wider adoption of Jet A fuel, a similar grade commonly used in North America, including for aircraft traveling to European destinations.

EASA issued updated operational guidance intended to help airlines, airports, and fuel suppliers safely manage the introduction of Jet A into European aviation systems. Although Jet A and Jet A-1 are closely related fuels, the agency noted that they differ in several technical aspects, including freezing point and electrical conductivity, which require additional safety precautions during operations.

The regulator cautioned that introducing Jet A into infrastructure traditionally designed for Jet A-1 could pose operational and safety challenges if the transition is not carefully coordinated across the aviation industry. EASA emphasized that effective implementation would depend on close collaboration between airports, fuel companies, airlines, and aircraft manufacturers.

The European Commission also released separate recommendations aimed at helping the transport sector respond to any future fuel supply disruptions linked to the Middle East conflict. While the Commission said there were currently no jet fuel shortages reported across the European Union, it stressed the importance of preparedness measures to maintain safe and uninterrupted flight operations.

The International Air Transport Association (IATA) echoed concerns about the potential impact of prolonged regional instability on global aviation fuel supplies. Stuart Fox, IATA’s director of flight and technical operations, said allowing European carriers greater flexibility to alternate between Jet A and Jet A-1 fuel, similar to practices already used in Canada, could provide airlines with more operational options during supply shortages.

Fox said the transition would require strict operational oversight, particularly for flights operating in colder regions, where Jet A’s higher freezing point must be taken into account during route planning and aircraft performance calculations.

He also noted that airports and fuel suppliers would need structured procedures for introducing the alternative fuel grade safely, including updated handling processes, clear labeling systems, communication protocols, and enhanced quality control measures.

Europe has experienced increasing pressure on energy and aviation fuel costs as instability in the Middle East continues to disrupt shipping routes through the Strait of Hormuz. European refineries currently supply around 70% of the bloc’s jet fuel demand, while the remainder is imported, largely from Gulf nations.

Last month, International Energy Agency Executive Director Fatih Birol warned that continued disruptions could lead to jet fuel shortages across Europe within a relatively short period.

Source: Anadolu Ajansı

Saudi Arabia has inaugurated a second gateway for its Makkah Route Initiative in Morocco, marking a further step in efforts to simplify pilgrimage travel. The new facility was opened at Rabat-Salé International Airport in the initiative’s dedicated hall.

The launch ceremony was attended by Saudi Arabia’s ambassador to Morocco, Dr Sami Al-Saleh, and Morocco’s Minister of Endowments, Ahmed Toufiq.

The Makkah Route Initiative is designed to enhance the travel experience for pilgrims from participating countries by handling key procedures before departure. According to Saudi Press Agency, the programme allows travellers to complete formalities in their home country, beginning with the electronic issuance of Hajj visas and the collection of biometric data.

Authorities then finalise entry procedures through the General Directorate of Passports, ensuring that pilgrims meet all health and regulatory requirements at the departure airport.

The initiative also covers the organisation of baggage, with luggage coded and sorted based on pilgrims’ transport and accommodation arrangements in Saudi Arabia. Upon arrival, pilgrims are transported directly by bus to their residences in Makkah and Madinah along designated routes, while partner agencies oversee the delivery of their belongings.

Source: ZAWYA