Middle East airlines to post world’s highest profit margins in 2026

Middle East airlines are forecast to lead the world in profitability in 2026, with a net profit margin of 9.3%, more than double the global average of 3.9%, according to the latest IATA Global Outlook. The region’s carriers are projected to earn US$6.8 billion in net profit next year, continuing to outperform the wider industry on profit margins after leading on net profit margin in 2025.

 

IATA attributes the region’s robust results to its strategic geographic position, linking Asia, Europe and Africa via major hubs such as Dubai, Doha and Abu Dhabi, combined with supportive regulatory frameworks and sustained infrastructure investment. 

 

Passenger traffic across Middle East carriers is expected to rise 6.1% in 2026, outpacing capacity growth of 5.4% and supporting strong yields.

 

The global airline industry is set to post a record net profit of US$41 billion in 2026, with total revenues surpassing US$1.05 trillion for the first time, while Middle East airlines capture a disproportionately large share of those earnings despite representing only a modest portion of global traffic. Asia Pacific is forecast to deliver the fastest growth, while North America faces stagnating domestic demand.

 

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Regional strength outpaces other markets

IATA anticipates the Middle East will generate the highest net profit per passenger globally in 2026, at US$28.60, over three times the global average of US$7.90. By comparison, projected net profit per passenger in North America stands at US$11.10, in Europe US$8.90 and in Asia Pacific US$2.60.

 

This strong performance builds on the region’s 2025 results, when Middle East airlines are expected to close the year with US$6.6 billion in profit – an upgrade from IATA’s June forecast of US$6.2 billion – maintaining a healthy 9.3% margin.

 

IATA said the Middle East’s outperformance “attests to the difference a positive regulatory operating environment can make, and to the region’s strategic position as a global connecting hub".