IATA Predicts Profitability for Airlines Despite Supply Chain Issues in 2026
According to the Economic Desk of Webangah News Agency, leading aircraft manufacturers Airbus and Boeing have both faced delivery delays in recent years. Airlines report that the absence of newer, more efficient aircraft hinders their ability to reduce fuel costs despite increased passenger numbers.
IATA remains optimistic for the coming year. IATA Director General Willie Walsh stated that airlines have successfully built resilience into their businesses, leading to sustained profitability. A decline in jet fuel prices could offer some relief. However, regulatory costs, particularly in Europe, and uncertainties related to global conflicts, drone attacks, and GPS interference pose obstacles to greater profitability.
Walsh added that confidence in Airbus has waned, while Boeing’s performance has improved amid supply chain challenges.
Earlier this month, Airbus was compelled to reduce its delivery targets due to detected defects in certain aircraft body panels.
Walsh noted a perceived shift in the industry. He stated that it is now widely acknowledged that Boeing’s performance has markedly improved. There is considerably more confidence in Boeing’s ability to fulfill its commitments and less confidence in Airbus. This is disheartening for the industry, as fewer new aircraft will be delivered than initially anticipated.
Reuters reported that Walsh also criticized engine manufacturers for delivery delays. They are lagging behind aircraft manufacturers in providing new and refurbished engines, compelling aircraft manufacturers to postpone delivery schedules.
