Willie Walsh: 70% rise in jet fuel prices to cost airlines additional $100B

Average jet fuel prices in 2026 will surge by 70% compared to last year, increasing the global aviation industry's total fuel costs by approximately $100 billion, International Air Transport Association (IATA) Director General Willie Walsh said at the opening ceremony of the IATA 82^nd Annual General Meeting (AGM) & World Air Transport Summit (WATS).

Report quotes him as saying the aviation industry faced a number of serious challenges immediately following the COVID-19 pandemic.

"We barely had time to leave COVID-19 behind when we were faced with disruptions to aerospace supply chains, the war in Ukraine, geopolitical tensions, and tectonic shifts in trade policy. And when war broke out in the Middle East in March, oil prices soared, and jet fuel costs skyrocketed. As a result, we expect average jet fuel prices to increase by 70% year-on-year, resulting in additional fuel costs for the industry of approximately $100 billion," noted William Walsh.

He also emphasized that demand for air travel remains robust, despite the forced tariff increases by airlines.

"The positive factor is that demand remains strong, despite the need to increase tariffs and rates to offset rising costs. However, the growth rate will inevitably slow to 2.1% for passenger traffic and 0.7% for cargo," the IATA chief said.

According to the association's forecasts, global aviation industry profitability will almost halve this year amid rising costs. Airline net profits will decline from $45 billion in 2025 to $23 billion in 2026, while net margins will fall from 4.2% to 2%.

"This is clearly an extremely low level of profitability. This year has been difficult for all airlines, but especially for those carriers that have not yet fully recovered their balance sheets after the pandemic, as well as for airlines in the Persian Gulf," added Walsh.