Overview
- IATA reduced its 2026 net profit forecast to $23 billion in a midyear update delivered at its Rio meeting on Sunday, citing a roughly $100 billion rise in the global jet-fuel bill.
- The trade group projects jet fuel will average about $152 per barrel in 2026, pushing the industry fuel bill to about $350 billion and making fuel more than 31% of operating costs.
- U.S. government data show carriers paid nearly $6.5 billion for fuel in April, a 78% year-over-year increase that forced airlines to raise fares, add fees and cut some flights.
- Financially strong network carriers have more capacity to pass costs to passengers while low-cost and weak-balance-sheet airlines face acute risk, a pressure that already contributed to Spirit Airlines' bankruptcy.
- Delivery backlogs at Boeing and Airbus and older fleets are worsening fuel use and maintenance costs, which could extend price pressure and accelerate industry consolidation and route cuts.