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Airlines' $7.90 Profit: Less Than an iPhone Cover!
9 Dec
Summary
- Airlines' net profit per passenger in 2026 is projected at $7.90.
- This profit is less than what Apple earns selling an iPhone cover.
- Industry headwinds include supply chain issues and delivery delays.
Airlines are set to earn a mere $7.90 per passenger in 2026, a figure significantly lower than the profit generated by selling an iPhone cover, according to IATA chief Willie Walsh. This projection highlights the industry's persistent challenge with maintaining healthy profit margins despite its crucial role in connecting economies and supporting global employment.
The International Air Transport Association anticipates a total industry net profit of $41 billion for 2026. However, Walsh emphasized that these margins are a "pittance" when considering the value airlines create, underpinning 4% of the global economy and 87 million jobs. He noted an imbalance compared to manufacturers and service suppliers.
Compounding these financial concerns, the global airline sector is battling various headwinds. Supply chain disruptions and aircraft delivery delays are hampering fleet modernization efforts. Consequently, the average age of aircraft is expected to exceed 15 years, with fuel efficiency gains projected at only 1%.
