"Record Profit Expectation in the Aviation Sector in 2026"

Expectations in the Aviation Sector: 3.9% Net Margin

The International Air Transport Association's (IATA) Global Media Day event was held in Geneva. IATA Director General Walsh shared expectations for airlines to achieve a net margin of 3.9% and a record profit of 41 billion dollars by 2026 during the opening of the event. He noted that this forecast is a very positive development despite the challenges in the sector.

Resilience of Business Models Despite Challenges

Walsh emphasized that the aviation sector is facing issues such as geopolitical conflicts, rising costs, and slowing global trade, but airlines are focusing on profitability. He stated, "Airlines have managed to integrate resilience into their business models that provide stable profitability and can absorb shocks."

Capital Costs and Low Profitability Issue

Walsh expressed that the airline sector continues to face the issue of being unable to generate profits sufficient to cover total capital costs, saying: "Airlines support nearly 4% of the global economy and provide jobs for 87 million people. However, Apple earns more from a regular iPhone case."

Profitability of the Value Chain and Future Expectations

Walsh pointed out that the air transport value chain has a serious margin imbalance among engine and avionics manufacturers and service providers. He emphasized that regulatory and tax burdens need to be reduced for airlines to generate more profits.