Airlines will make less profit flying a passenger across continents than Apple earns from selling an iPhone cover, International Air Transport Association (IATA) director general Willie Walsh said on Tuesday, underlining the industry’s persistently weak margins, PTI reported.Releasing the global aviation industry’s financial outlook for 2026, IATA projected total net profits at $41 billion next year, but said returns at an industry level remain disproportionately low compared with the value airlines generate for the global economy. Net profit per passenger is estimated at $7.90 in 2026, unchanged from 2025 and lower than the $8.50 recorded in 2023.“Industry-level margins are still a pittance considering the value that airlines create by connecting people and economies,” Walsh said, pointing out that aviation underpins nearly 4 per cent of global economic activity and supports about 87 million jobs. “Yet Apple will earn more selling an iPhone cover than the $7.90 airlines will make transporting the average passenger.”Walsh also said margins within the aviation value chain remain uneven, with airlines lagging far behind engine makers, avionics firms and several service suppliers. The sector continues to face headwinds including supply chain disruptions, aircraft delivery delays and geopolitical uncertainty, IATA noted.Fuel efficiency gains in 2026 are expected to be limited to about 1 per cent, as manufacturing bottlenecks slow fleet renewal and push the average age of commercial aircraft beyond 15 years, the airline body said, warning that these constraints will continue to cap profitability despite steady demand.
